Quiet Confusion
Very light volume in a weak overall session across the equity index complex this morning. I would estimate that the SPZ volume is running around 60% of normal. Accordingly, we have been relatively range-bound considering our past couple of sessions. We have a 1600-point range for the session, having just made the lows of the day at 1383.
The market and trade in general is stuck right now. It appears as though all the volume has moved to the sidelines until something gets decided about this election. Until this happens, the sidelines are a very safe place to play from.
However, one crucial note involves the NDZ. IF the cash index trades through its yearly low of 2897.50 — and I think it will — a dam could break loose to the downside, carrying the SPZ with it. Keep an eye on Sun Microsystems
(
SUNW |
Quote |
Chart |
News |
PowerRating) and Intel
(
INTC |
Quote |
Chart |
News |
PowerRating) as they are struggling and taking the market with it.
Do you have a follow-up question about something in this column or other questions about trading stocks, futures, options or funds? Let our expert contributors provide answers in the TradingMarkets Question & Answer section! E-mail your question to questions@tradingmarkets.com.
For the latest answers to subscriber questions, check out the Q&A section, linked at the bottom-right section of the TradingMarkets.com home page.