The market continues to put everyone to sleep. How many times have we seen this gap and nap trading day in the past few weeks? Not much to say except that it’s a stock picker’s game as of late and if you are playing indexes in the current environment, you must be out of your mind! The conventional belief when such sideways action occurs is that the market is coiling up for a big move. The question is of course which way. Bulls believes there is still some green shoots to smoke while bears think the prairie is on fire. Bigger levels to watch continue to remain SPY 108 and SPY 112. As far as shorter term, there is a short setup from today’s high which is a 50% fib from the highs to yesterday’s low on the ES but I wouldn’t be too aggressive with it given the current non-trending market.
Economic Data:
- Thursday: Trade Balance (-32.9B vs -37B), Unemployment Claims (474K vs 463K), Federal Budget Balance (-120B vs -136B)
- Friday: Core Retail Sales m/m (0.6%), Retail Sales m/m (0.6%), Import Prices m/m (1.2%), Prelim UoM Consumer Sentiment (68.7), Business Inventories m/m (-0.3%)
Evening reading:
- US Dollar begins to shake off carry trade woes (Trader’s Narrative)
- Three problems seen among traders in 2009 (Trader Feed)
- Foreshadowing on the tape (SMB)
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- SPY DAILY
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- IWM DAILY
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