Friday, July 29, 2011
S&P Still Rangebound, Low Volume; Euro Rally May be Completing
The S&P remains rangebound. I thought we might get a nice breakout of the range to the downside after yesterday's reversal. But it seems the low volume is making that impossible. Today's early weakness has been bought up immediately, putting price right back into the range as seen above. I see a directionless market here over the past several months, and now the market is probably waiting for the "debt crisis" in Washington to get resolved before it breaks out of its long held range. Once volume enters the market again, we should get a nice breakout of this range and a good short term momentum trade. Until then, I see only options strategies favoring sideways movement being favored here.
Using Elliott Waves: As Simple As A-B-C
The euro appears to have declined in 5 waves and is completing an a-b-c upward flat correction. Early next week should bring more weakness to the euro in this case.
PLEASE NOTE: THIS IS JUST AN ANALYSIS BLOG AND IN NO WAY GUARANTEES OR IMPLIES ANY PROFIT OR GAIN. THE DATA HERE IS MERELY AN EXPRESSED OPINION. TRADE AT YOUR OWN RISK.