7/3/2012 Monthly Factory Orders (0400 HI time / 1000 EDT)
Previous Revision: -0.1% to -0.7%
SPIKE / REVERSAL
Started @ 87.84
Peak @ 88.04 – 0401 (1 min)
Reversal to 87.18 – 0412 (12 min)
Notes: Positive report exceeded the forecast offset by a small downward revision to the previous report. This caused a long spike of 20 ticks in 1 minute that crossed no SMAs and bounced off of the S3 Pivot. Since the market had rallied about $6 or 600 ticks in the last 22 hrs, even with a strong report, it finally gave way to the bears and the overbought perception prevailed. This is why we saw a 86 tick reversal in 11 min that fought through the 50 SMA after the peak.