It was a good day for the bulls as far as point gains, but the move higher on low volume leaves the market in a rather awkward technical position. A lot of market players were looking for last week's pullback to set us up for a window-dressing bounce to complete the quarter, but many were caught by surprise when we jumped so quickly this morning. It would have been a lot easier if we had some low-volume selling today as a setup for a bounce, but the market always likes to keep us off-balance...
So now if you want to play a potential window-dressing move, you have to trust that a low-volume move will continue and take us right back into obvious resistance at last week's highs. The market has consistently handled such challenges extremely well, but it is faith rather than the charts that has been the winning approach.
Volume will pick up tomorrow, and we'll see if the bulls can build further on this shaky foundation. That hasn't mattered much for a long time, however, and there is little to indicate that conditions have changed....
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment