Trading Rally — Will It Fizzle?
After opening on or near session lows in both the SPH and NDH the market staged a tremendous trading rally before fizzling. Now the question of the day is will we move higher from current levels or will the sentiment overwhelm this session as it has past ones?
The day started out with one institution purchasing over 2000 from the 1306-1312 level. However, rumors of hedge fund scale-up selling between 1308-1316 seemed to offset the buy interest. Of course, buy stops were triggered across the ring during this move.
Now that we are back down near the lows of the day, I am looking for a possible trade down to 1270, our nearest major low. On the way, 1288-1284 and 1277-1275 should provide support. Again, I am not looking for a rally from these levels.