Friday, October 16, 2009

Midday Briefing for October 16th: Breaking the Range

After breaking below support from the previous two trading days, prices have consolidated with 1082 in ES shaping up as important near-term resistance. We're trading near the 10/14 lows in ES, but note that we've broken those lows in the NASDAQ and Russell 2000 Indexes. Recall the observations re: the market's expansion of 20-day lows and decrease in 20-day highs yesterday; the current weakness is consistent with that and suggests that we have begun digesting the recent gains.