Consolidation
S&Ps have about a 650-point range, with very little happening in terms of directional movement. However, it’s definitely worth noting that we have not been able to breach the 1470 level, and therefore, have yet to fill the gap open. The longer that this holds true, the more bullish it is.
One of the keys for this month’s trade in the S&Ps has been the inability of the market to rally two days in a row and the inability to rally from higher levels. If this pattern is to hold true, today should produce a settlement near the unchanged level.
However, if we break this pattern, we would look for a final-hour rally that would lead to a settlement above 1479, and that would put us in the moderately bullish camp for about the next two weeks.
As far as trading in the pit, dealer activity was heavy between 1473 to 1474.50.
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