Monday, September 21, 2009

Midday Briefing for September 21st: Returning to the Range

Here we can see the market breakout this morning and the subsequent range trade on low volume, as we've stayed above the day's volume-weighted average price. We can see from the histogram at right that we are forming a "double distribution" day, with a volume bulge around 1054/1055 and another around 1059/1060. Both selling and buying pressure have been restrained as the day has progressed, reflecting reduced volume ahead of the Fed meeting. Oil remains weak; the U.S. dollar is off its highs of the day. Ten-year Treasury rates have moved higher along with stocks. As long as we remain above the 1056 level representing support from late last week, I'm treating this as a multi-day range market.

1 comment:

Matt Fahmie said...

Three day high volume node is 1063. Expect price to slow around high volume areas. If one did correct preparation, one could have anticipated this slow down as we moved into area.