The Dow, Is It A Leader?
Buyers came into the equity index complex early today, but sellers quickly exerted influence as we retraced some of yesterday’s gains. Since then, however, buyers have resurfaced in a rather wild and volatile trade. As I write this, we are closing in on the session highs in the SPZ, in spite of the NDZ trading below its session highs.
Where to from here? Well, I am again looking for an afternoon rally. I think the majority of the selling has been absorbed and we are poised to move higher. The key will be sustainability next week. If we can hold this up-move, I am expecting a substantial retracement of our recent losses.
For the rest of the session, I am a buyer and looking for large-scale institutional participation in the afternoon on the buyside. This should take us towards the 1407 level.
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.