The Air Above 1500 Is Mighty Thick
Another brief flirtation with the 1500 handle in the SPU produced the only action in a very boring CPI session. In my Monday update, I wrote the best thing a trader could do would be to come back on Wednesday for the CPI. I am amending this to Monday for the usual rally before the FOMC report.
As for the pit action, or lack thereof, dealer selling was seen from a couple of players above the 1500 zone. In general, things were light and boring with Locals dominating the action. We are clearly stuck in the August doldrums and there is very little reason, in my opinion, to trade this market. As for hard numbers, any trade above 1503.50 should lead to a test of the 1510-1512.50 resistance. If, on the other hand, we head south, I still have support between 1489-1491, below this look for 1483 — any selling beneath this level should be looked upon as a covering opportunity for shorts.
My best advice, and I sound like a broken record here, is head for the golf course.