Friday, March 12, 2010

Morning Briefing for March 12th: Looking Toppy

We opened the session with early selling after the overnight session took us to bull market highs. I am watching closely to see if how the buying and selling sentiment develop in the near term, to see if we can stay above overnight support around 1144 in the June ES futures. A move back into the range from 3/10 to 3/11 would constitute a failed breakout and would be consistent with the notion of a topping market. Note how we've already seen momentum top out in the Demand/Supply numbers. We also saw fewer 20-day highs yesterday despite the late move to price highs.