Tuesday, June 09, 2009

Pre-Opening Briefing: In a Range

Here we can see that the S&P 500 e-mini futures contract (ES) is trading in a multi-day trading range, consolidating the gains from early in the month. If we can hold the overnight lows around 934, we should make another stab at the high end of the range. I will need to see good sector participation in any such move, however, to go for any breakout. With fewer than 1000 stocks making new 20-day highs yesterday and a bump up to over 270 new lows, I'm concerned that the rally may be narrowing its base of participation.