Up, Down and Now Sideways
The SPU took off on a relatively benign Non-Farm Payroll Report during the Globex session before profit-taking brought us back to yesterday’s afternoon lows.
While the pit session has a range of only 1519-1534, the moves have been dramatic and quick. One seller took the market down from its 1534 high after the release of NAPM on selling upwards of 1500 contracts. The market did not handle the order well, as speculators who had gone long were selling at any price and trying to establish shorts. They quickly were stunned as buyers came in at support levels between 1520.50 and 1519.
All told, we are getting busy again, as this morning brought back volatility and true buying and selling from the dealer community. However, before we get really excited about today’s action, I will tell you this: Volume is about to get very thin as traders prepare to leave early for the holiday weekend. I am one of them. The pit will be half-full this afternoon and could produce moves of consequence on screens, but of inconsequence in terms of price and volume. If we do rally, look for 1535-1538 to be resistance, above this level, 1542-1545 should cap any upside. Also, on the downside, any selling below 1518 should be taken seriously. In addition, if we close down on the session, it would not be a happy open for the bulls in September.