Wednesday, January 13, 2010

Morning Briefing for January 13th: Range Within a Range

We've bounced off yesterday's lows; note the multi-day support in the ES contract around the 1127 area. That places us in a trading range defined by those 1127 area lows and yesterday's highs.

Note also that the 1137 area that acted as resistance after yesterday's initial leg down is now near-term resistance for the bounce off the lows. This nicely defines a range within a range. Morning trading should be cognizant of both ranges and alert to whether buying/selling expands or dries up as we approach these range extremes.