Good Morning Traders!
A fellow colleague pointed out that the SP 500 has had 5 days in a row with a change of plus or minus less than 0.1%……5 closes in a row between 22038 and 2041. This has only happened a couple of times since 1928….(courtesy of Ron Griess). it is pointless to try and forecast any directional bias when such a sideways line has formed. The Russell has been correcting daily sell divergences by trading down, while other indexes have been consolidating sideways. The daily oscillator can continue to work lower, or, the Russel can try back up after three down days….everyone is watching the same 5 day highs and lows.
Both Corn and Wheat have Pinball buys. traders can trade either Dec or march at this point – buy a test below Monday’s low, or the markets can also forma higher low. Currencies had a corrective day back down. The EC pulled back to the middle of a previous chart formation. The chart above shows just how technical this market has been. Note the Sunday night test almost perfectly to a previous swing high. CD is the RS leader and has been channeling to the upside.
Not too much to comment on for Tuesday. The markets feel like they are still letting the dust settle after Friday’s extreme volatility in the financials.
The pace of volume in the first 30 minutes may set the tone for the rest of the day…..
Markets in BO Mode: