Up…In A Slow Mode
S&P futures traded higher, but after the flurry of the past few trading sessions, it’s no surprise we’ve been in a slow mode for much of this morning.
Early this morning in the pit, I saw volume on both sides of the market. The bids firmed up between 1407 and 1409, bringing us to a high of 1419.80 — but did not take out Friday’s high.
Look for the market to drift for a while. If we take out the 1407 area, we could test the 1399.50 area. On the upside, we have to stay over 1415, which could pave the way for 1417.50 and 1421-1422, with an ultimate objective of 1430.
Given the extreme volatility of last week — S&Ps rallied some 98 handles in three sessions — this market could take a well-deserved breath. In general, I would stay on the sidelines until around 2 p.m. when volume could pick up again.