The Morning After
The equity index complex feels like a hangover this morning, as little enthusiasm or volume on either side of the market has produced a rather slow session. About the only excitement was when the NDZ traded limit down, albeit briefly, and then produced a solid rally off the lows to new session highs for the week at 3345.
The SPZ has been contained in less than a 1000-point range, and I don’t expect much more to happen today. However, what will be important is if this market can begin to build a constructive base in order to move higher in the next few weeks. As long as the SPZ closes above the 1419 level, I think one must trade with a long bias. If this level were to be exceeded, it will call into question the near-term direction and momentum.
In general, I view today as a constructive, base-building situation where we should have little movement from yesterday’s settlement levels in all the major indicies.