Home, home on the range ..... range bound that is. Last Thursday and Friday we saw the indexes get hurtled back from the current range resistance which was around their 50 day moving averages. They were body slammed down to their support levels in the range, from which they bounced nicely at the end of the day. While we are always fascinated by what the market does, we are particularly interested to see how it behaves in these ranges. Will the market continue on its way up to the resistance levels, or was today the dead cat bounce from which it rolls over and gives up the support?
Every market day brings another question. Nevertheless we were encouraged to see the end of day bounce. Our momentum indicators continued their downward direction, but our all important slow momentum indicator remained in the neutral range. Fast momentum has zoomed downward and we expect to see a turn on that indicator soon which should give fuel to the slow and moderate indicators.
It was also encouraging to see that there was no panic after the big down day on Friday. Volume was below what it has been lately, so I don't see any big move for the exits. Right now I am still reading this to be a correction to the run up to the 50 day moving averages and we are reloading for another run. Tomorrow may change that story, so we will be listening to Miss Market.
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