Tuesday, September 15, 2009

Morning Briefing for September 15th: Trying to Sustain Breakout

Well, after writing about breakouts and volatility following trading ranges, we broke out of the two-day range with buying on the retail sales news. As we can see from the chart above (ES futures), we are just managing to stay above the Friday and Monday highs after the move up. I note, however, that NQ futures have moved back into their range and we're not seeing highs in gold or oil. We also see a bit of strengthening in the USD. That suggests that, for now, intermarket themes are not supporting the upside breakout. Should that continue, I'd look for evidence of early weakness today for a reversal back to the 104.79 pivot area in SPY. (Profit targets are published via Twitter before the market open; follow here).

I'll be following up with early tweets and blog updates tracking market strength and themes.