No Change on the Weekly - Inside week so far. On the Daily Bar - we have closed slightly higher each day and continue to make higher highs and higher lows but the range is fairly well contained. We came into Wednesday with overnight inventory mostly short - which got further short in the first hour of trading - which then prompted a swift short covering rally. However, we closed right at resistance 1444.50 - the low of the upper balance area. I believe there are a lot of weak longs in this market who are are not getting much for their money since we made the lows at 1424 and are inclined to bail on any indication of bad news or rumor. Jobless Claims are due out tomorrow with Non-Farm payroll numbers due out Friday.
Shown above are the regular pit and overnight trading session profiles. Notice today's low at 1435.50 - also the low of the last two overnight trading sessions - is short term support. I continue to maintain that the risk of being long is high and with two poor lows below us - the odds of further upside continuation are low. We closed today almost at the center of the larger trading range- 1424-1468. Short-term
trends, very often, begin from the center of a larger trading range. These
trends can also evolve into intermediate-term trends. That is what I will be looking for over the next couple of days - a breakout of Balance.
Shown above are the regular pit and overnight trading session profiles. Notice today's low at 1435.50 - also the low of the last two overnight trading sessions - is short term support. I continue to maintain that the risk of being long is high and with two poor lows below us - the odds of further upside continuation are low. We closed today almost at the center of the larger trading range- 1424-1468. Short-term
trends, very often, begin from the center of a larger trading range. These
trends can also evolve into intermediate-term trends. That is what I will be looking for over the next couple of days - a breakout of Balance.
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