Friday, April 16, 2010

Midday Briefing for April 16th: Following Up a Sell-Off

Note how we saw a significant uptick in volume and volatility on the downside breakout that followed the GS news. We traded below support at 1185 on very weak NYSE TICK only to move back above that level. We're now building volume and accepting value between 1185 and 1190. How the day shapes up--as a trend day down or as the start of a range market defined by the bull highs and today's lows--will hinge upon how we trade relative to that volume bulge.