ECB meeting did not disappoint. Only the indexes stayed in a narrow contained range, continuing to consolidate Tuesday’s torrid move. Fridays tend to be the narrowest range of the week. However, with two back to back narrow range days in indexes, let’s hope they can pick up a bit. If they do, look for leadership from the DOW which still has the most visible magnet to the upside. IBM looks fine and it is one of the top 3 weightings in the DOW. Gold is in play and so is silver for upside follow through. Many markets such as the EC and AD that had large range expansion can do typical Z day rotation or consolidation to the hourly EMAs, etc. The Yen had a good downside break – any morning rally can find resistance at the 120 minute EMA – likewise for bonds and tens. Nat gas – 8 day coil has formed. Will a breakout attempt get legs? Or prove to be another bull or bear trap?
Everyone have a great weekend! Linda