Friday, April 24, 2009

Morning Market Briefing for April 24th

As this quickie chart from Big Charts illustrates, we're in a two-week range in the S&P 500 Index (SPY), with the value area (region of most concentrated volume transacted) squarely between 84 and 86. Note that today's pivot is 84.95. The big issue as we start trading today and attempt to test recent highs is whether we can build volume at the upper end of this range and eventually establish a new value region. If not, we'd expect a reversion into the value area above and that 84.95 pivot. Note that, as of my posting this, we're trading near R1, testing the 4/22 highs. How that test fares will set up the day's trade.