Monday, February 22, 2010

Midday Briefing for February 22nd: More Range Action

The morning update identified the range bound market conditions, and those have continued through the afternoon. Note how we've set clear bounds to the range by rejecting the false breakout highs in preopening trade (top blue arrow) and the early morning lows (bottom arrow). Thus far we've been correcting recent strength in a relatively flat manner, and we've seen a positive shift in NYSE TICK during the afternoon. Commodities are off their morning lows, as are the euro and Aussie dollar. As long as we can hold above those morning lows, my leaning is to look for higher prices in keeping with the short-term uptrend noted in the indicator review.