Is ‘Boring And Choppy’ Over?
It appears as though the end of the “boring &
choppy” phase may be upon us. The S&Ps managed to close above 900,
although they are trading a bit below that ahead of the Jobless Claims
Report. Nonetheless, the market is continuing to do just the opposite of what it
had grown so used to doing in recent months, the selloffs are now being
bought. There is no “pop” to the downside. However, at least as of now, there is
no “pop” to the upside either. The market is still digesting its recent gains.
A picture is worth a thousand words. The hourly chart of the S&P futures
below illustrates the market’s current dilemma.
As you can see, the trend has been steadily higher, but narrow on a
day-to-day basis. I think it is safe to say that a break above 900 may bring
back some sorely needed volatility intraday. Â
Yes, I know the column is becoming repetitious, but that is the story. Sure I
could put a really fancy “analyst” spin on everything and talk about a lot of
fluff, but I would be lying. Quiet periods in the market are just as important
for traders as are active ones. The lulls in the market sharpen your
discipline. So the game plan remains the same: trade selectively and trade
early. The best trades are in the first hour.Â
Key Technical
Numbers (futures):
S&Ps |
Nasdaq |
| *928* | 1025 |
| 917 | 1018 |
| *914* | 1011.75 |
| 906 | 1005.50 |
| 902 | *993* |
| 895 | 989.50 |
| 886 | 980 |
| 873 | 973 |
* indicates a level that is more significant
As always, feel free to send me your comments and
questions. See you in TradersWire.