Thursday, July 16, 2009

Morning Briefing for July 16th: Back in the Range

Note how the bounce on the morning jobless number reversed and took us back into the overnight range in ES (bottom chart), as we now trade near VWAP. That price rejection in the low 930s sets up an important resistance/reference point for the day's trade. Meanwhile, since that time, we've seen a bit of strengthening in the U.S. dollar, weakness in crude oil, and pullback in 10-year Treasury rates. I'll be watching those intermarket themes closely and updating via Twitter.

9:29 AM CT - We can see (top Market Delta chart) how we have been oscillating within the overnight range, with VWAP near 927. The failure to sustain significant high or low TICK readings thus far this AM has helped sustain this as a range trade.