Tuesday, September 22, 2009

Midday Briefing for September 22nd: Continuing in the Range

Here we can see the clear range trade in the S&P e-mini (ES) futures going into tomorrow's scheduled Fed announcement. We held support in the 1062 area per the morning briefing and have been consolidating in the 1067-1070 resistance area. I expect an upside breakout taking out that resistance as long as we can sustain buying pressure (positive cumulative TICK) above that price level. A move below 1062 would constitute fresh selling pressure and target the lows of the multiday range. Thus far, weakness in the U.S. dollar and firmness in gold prices are supporting higher stock prices. I will be tracking market developments via Twitter, particularly tomorrow as we approach the Fed announcement.