Quiet, Choppy And Lower
The sidelines seem to be the favored place in a very quiet downdraft across the equity index complex. The trade has been steadily building losses, after opening nearly 1% lower in the SPZ. Due to the gap down open, volatility has been left behind and the market has been reduced to a choppy directional trade. Normally, these sessions are very difficult on local traders, as they tend to have shorter holding periods than off-the-floor daytraders. Today is not exception, as locals are accounting for the lion’s share of the volume and attempting to force the market both higher and lower.
For the afternoon, look for more of the same. However, I am looking to be a buyer in the last 30 minutes of trade.
Most of the dealers are staying put until this election settles itself out. One thing I know for sure, this market does not need any more bad news.
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