The bond market and banks are closed today. Along with no economic news, there is little to move the markets. Friday was a slightly above average range day, and this morning is a below average range morning. When the market is off of support, you can anticipate some profit taking by long equity holders. These traders will try to sell at as high a price as possible. So, many will try to sell on test of a resistance level. This morning most of the selling occurred at Friday's high, and the overnight high. The market just has not been able to make it all the way to R1. It did close the open gap with Friday's close, but it has not been able to close the gap with the Pivot level, as yet.
Charles
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