Looking For The Curveball

A holiday shortened week may end with a
good dose of volatile price action. This, of course, will play out if some of
the economic numbers due out today throw the market a curveball. If not, expect
the morning session to be the only active part of the day as traders file out
early to get a jump on the long weekend. Given that the afternoon sessions
recently have been a non-event, I too will participate in the exodus (no pun
intended).

10 AM EST Economic Numbers:

Michigan Consumer Sentiment                                
95 est.

Chicago Purchasing Managers Index                       
54 est.

For the most part this week, I have only traded (HVT)
during the first hour and a half. After that, I am simply managing outstanding
positions or establishing other trades which are not HVT
related. As regular readers know when the markets get slow, you need
to adapt and extend your time frame a bit.

The S&Ps continue to grapple with key resistance and support levels. This
is further compressing already muted volatility. I truly sense that it is only a
matter of time until this range is broken. The battle between the bulls and
bears will continue to play out in the meantime.

Key Technical
Numbers (futures):


S&Ps

Nasdaq
1170 1477
1156 (massive confluence) 1465
1145-47 1460 (key resistance)
1136 (critical support) 1443
1124-26 (critical support) 1435 (critical support)
1116 1423
1107 1401-03

I will not be posting a column on Monday due to travel plans. However, enjoy
the long weekend, and I will be back on Tuesday.

As always, feel free to send me your comments and
questions. See you in TradersWire.

Dave