Friday, September 18, 2009
Midday Briefing for September 18th: Inside Day
Note how volume has tailed off as the trading day has progressed, as we've stayed within a range defined by yesterday's highs and the overnight lows. Gold is trading lower; oil and the U.S. dollar vs. euro are trading in short-term ranges; 10-year Treasury rates are higher.
Should the range continue into the close, this will set us up for breakout trading alerts early in the week. Given the strength of the recent rally, it would not be surprising to get some consolidation of the gains this coming week. Because price highs normally follow from momentum peaks, I would expect that backing and filling to ultimately lead to higher prices.