Thursday, October 15, 2009

Morning Briefing for October 15th: Back to the Range

Note how we've pulled back in pre-opening trade in the ES futures, taking us below the breakout bar from yesterday afternoon. That returned us to the thick of Wednesday's range (pivot level), setting us up in a range defined by Wednesday's highs and lows. New 20-day highs expanded yesterday, with solid momentum as defined by the Demand/Supply measure reported each AM via Twitter. I need to see signs of failing strength and momentum to be a seller on anything more than a short-term trade; my prior sell signal was abrogated with the market's breakout above 1072.50.