Tuesday, March 23, 2010

Midday Briefing for March 23rd: Tracking a Range Market

We've remained in a range all day long, but if we can hold the VWAP level on selling, we should be able to mount a decent test of the day's highs, particularly if small caps can outperform and if we can sustain firmness among other risk assets. As a rule, I'll play potential range breakouts in the direction of the larger time-frame trend.

Note that I have an oscillator at the bottom of the chart. In a range environment, these can give relative orientation to potential buy and sell levels; in anything other than a range environment, I don't find traditional oscillators to be of much use.