Volume is a good indicator, perhaps major players are on side lines, if we really look at the SPU chart over two weeks period you will see that on average we have stayed within a range, when these markets are stuck within a range more often than not volume dires up, it is a natural consequence of lack of interest from momentum players, the market volume is built on 'trading activity' and therefore in a directionless market this activity is all forgotten, I think the most important thing for me would be to see the rebound of BKX that is certainly very positive for the future direction of the market, probably the market on a single point rasie may still sell to 1325 area or even lower so as to rebound later, I don't agree that if we have this raise it will 'cut and dry' easy, we will see a lot more volatility before the players pick the booty at the right price.. I think market would test supports like 1318-1330 even with a single raise, a double raise will be most effective thing for long term health of the market..we go down hard but will equally rebound from supports...in case of double raise market may initially react even differently interpreting the move by Fed as pro-active and hence may rally hard, many permutations to a simple question but a trader needs to keep thinking..
NDX rebound off 2185 for thre consecutive session and a close above 2215 is a good sign..http://quote.yahoo.com/q?s=^NDX&d=5d
If we break this 2255 reistance we go to last wek 2275 and all this points to a good move..
Ike |
