Wednesday, March 03, 2010

Midday Briefing for March 3rd: Reversal and a Range

We can see how the upside breakout failed after sellers entered in force, leading us back to and through VWAP and creating a range day. This places us in consolidation mode following a solid bull move, with a range clearly defined between the overnight lows and today's highs. As I've suggested in the recent indicator post, the momentum indicators tend to peak ahead of price, leading me to believe we could test range highs in the days ahead. I'll be watching other risk assets to see how they behave during this range period.