Friday, November 06, 2009

Midday Briefing for November 6th: Range Within a Range

As you can see from the S&P 500 e-mini (ES) futures, we've been trading in a range today, which I've also been viewing as a multiday range. Although we're near the day's highs in ES, many of the correlated risk markets (oil, gold, euro, Aussie dollar, 10 year Treasury yields) are off those highs. I'm continuing to view this as part of a bottoming process that began with momentum lows earlier this week. Should we hold those lows and see non-confirmations from indicators, indexes, and sectors, I would shift to a very bullish intermediate-term stance.