I had mentioned in yesterday's blog post that the market was quite short and what we saw today was short covering that delivered an Inside Day with another poor high. While we settled on the lows, the two back-to-back poor highs lower the odds of downside continuation. Value was unchanged and there is still no Excess on the highs. I am treating the last 3 days as Balance and unless we get any European news I expect the market to stay within Balance. Key references to the downside 1430.50 - balance area low and the prior 2012 high at 1424.75. Price acceptance below that level represents a breakout failure.
There are major news announcements scheduled for this week - FOMC meeting and German Court ruling on ECB plans - which may add to the volatility.
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