The overnight activity has remained within yesterday's trading range. Yesterday was an Inside Trading Day and (Narrow Range) NR4 and NR7 day. Yesterday, the market found support near a 50% correction of the previous day's range.
In the next day or two, look for a breakout of yesterday's range, but watch out for false breakouts. True breakouts should have expanded ranges per bar and increased volume.
Durable Goods Orders at 0830 ET
New Home Sales at 1000 ET
Crude Status at 1030 ET
2-Year Note Auction at 1300 ET
YESTERDAY'S REVIEW
The long term average of the $TICK pivot ((H+L+C)/3) remained above zero most of the day indicating a more bullish sentiment than bearish. This resulted in an uptrend most of the afternoon following the 50% correction in the morning.
The $TRIN is not always a reliable indicator. Sometimes the $TRIN will show increased selling pressure with the futures market showing a consistent uptrend.
Yesterday, however, the $TRIN did confirm an increase in bullish sentiment in the afternoon with a $TRIN trend to the downside, and stabilizing near the pivot number for the previous day.
The NYSE Advance - Decline Line confirmed the futures uptrend by making higher highs and lows following the morning's correction.
Charles
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