Unchanged And Bored
The SPU market has traded both sides of unchanged in a thin, lifeless trade. I witnessed strong dealer buying yesterday near the session lows, the same can be said for this morning’s session. Between 1479 to the low of 1477.50, dealers were bid every .50 for 100 or more contracts. Obviously, it will take some strong selling to get the market below the 1475-1481 support zone I see. On the flip side we have not seen the type of buying near the session highs needed to push us into rally mode.
What does it all mean? It seems to me that Thursday’s ECI report becomes larger in importance the more we trade towards the lower end of our recent range. Most of the dealers will be on the sidelines until after the report – unless we get to specific levels of interest, such as the 1475-1481 area. I have been buying the market near the 1480 level and looking for a run to 1491. I am still looking for this to happen, but, I have a small position on as we are trading in an illiquid period.
My advice, head to the golf course until Wednesday afternoon.
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