Thursday, December 17, 2009

Morning Briefing for December 17th: Breaking Support

We can see from the Market Delta chart of the ES futures above that we've broken below prior days' support around 1100 and are now building volume (and thus accepting value) in the 1096-1098 area. Note how we've seen more volume through the pre-opening session transacted at the market bid than offer, as stocks have sold off and the U.S. dollar has rallied sharply.

I will be watching Cumulative Delta (bottom row of columns at bottom of chart) and how we trade relative to that 1100 level (and relative to VWAP; red line) to see if we can rotate through the entire multi-week trading range.