Friday, December 11, 2009

Midday Briefing for December 11th: Continued Range Trade

Note how we held support around the 1095 level from yesterday's low and the 1097 area from the overnight low, moving back to the volume-weighted average price (red line). That also has placed us back into the volume/value range (right histogram) as we continue a range trade. Thus far, volume has been muted and TICK values have been restrained as well, with little institutional participation to sustain moves outside the range. Meanwhile, we continue to see U.S. dollar strength and commodity weakness; NASDAQ stocks are relatively weak, and 10-year interest rates remain well above 3.5%.