Friday, June 12, 2009

The picture of indecision

Compare the long wicks on the last six trading days of the SPX compared to what came before -- the picture of a battle between the bears and bulls. As we've written in the newsletter in the last few days -- sentiment/momentum is not sufficient any longer for a meaningful break-out as the up-trend has waned. This means that the only thing that will move the market out of the range is significant fundamental news. As long as this tight range continues we're shorting resistance and buying support.