Tuesday, October 13, 2009

Midday Briefing for October 13th: Back Into a Range

We took out yesterday's lows in ES, but not NQ; the morning trade brought weakness to energy shares (XLE), but not homebuilders (XHB). Such mixed signals are helpful in identifying when market moves may reverse, rather than extend into trends. We reversed back into the overnight range, but advancing shares still trailed decliners. At this juncture I'm watching the volume-weighted average price around 1068, to see if that serves as a fulcrum for a range trade bound between the morning lows and the overnight highs.