What happened in the markets since we last got together last night? Let’s focus on ES:
By Daniel at 23 December, 2009, 12:33 am
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1) They pumped up the stock futures overnight once again
2) The highs were established in the morning in ES, and we have seen that before also
3) After the morning highs were established, they were not exceeded throughout the remainder of the day………..another familiar occurrence
4) The market was levitated this morning on positive tick, but that tick was not impressive…………There wasn’t even one incidence of a +800 tick, let alone a +1000 or +1200 that previously powered the market upward. This market, but for the lack of volume, could not have advanced significantly on the kind of buying power that was present in the market today.
5) We are still traped in the box, as we have not seen a close below 1075 nor a close above 1115.
Assessment:
Because the high was made early in the session, and then never penetrated again, the misleading energy of the morning was an isolated event without staying power. It appeared again very briefly at the very end of the day, but again, was not significant in relative terms.
While this kind of assessment may be getting old to some, I cannot ignore it. Many times this kind of action will precede a decline. This could occur tomorrow, indeed in a normal market environment it would be highly likely, as there is no real reason that the institutions (mutual funds) will be buying as we go into the holidays. They have their bonuses for end of year assured, and it is vacation time for the rich and richer who run these funds. It will be interesting to see if some heaviness tomorrow, in combination with a lack of significant tick (buying power), might turn into a trend move to the downside for the day………….
Stay tuned………..we will see
- fishhook
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