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Emini S&P Analysis For Mar 8
Posted on March 8, 2010 by Chuck Kowalski
Not the typical Monday we have seen over the last several months. Today was a big yawn day. The range was extremely small and the volume the worst we’ve seen this year. Not much to say about today as there were no pivot trades and you can’t play any breakout trades when the market is stuck in a range all day and the volume is pathetic.
This bring us to Tuesday. I would expect a strong breakout trade on Tuesday – the question is which way?
The market is very overbought and showing a good deal of divergence. My gut says it need to go lower, but this market wants to keep chugging higher. The lack of volume is a serious problem, which we might look back on this several months from now and it will be obvious there were warning signs.
The S&P and Nasdaq futures are close to their previous highs and I would at least expect a test of them. From there, we can see if there is follow through or a failure. The market could churn in a narrow range for a few days before it tries to test the highs. Either way, you have to follow the trend when you are day trading, regardless of your opinions.
Filed Under: E-mini Stock Futures