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.

Market Snoozefest Continues; Euro Shorting Opportunity on the Table

Although it may seem like the markets have been wild lately, overall there is practically a net zero gain or loss over the past several months.  The market is range bound and trading on very light volume.  Wall Street must be working on their tans in the Hamptons and those left back to still trade are probably waiting for this US debt "crisis" to get solved.  As for me, I've been hitting the beaches in souther California and the pools up here in the Bay Area.  I plan to continue doing that until the market demands my attention.

Until the range is broken, there is no play here in my view.  But whichever way the range is broken, up or down, should be the quick and sharp direction for the short term.  So short term momentum traders can consider trading the breakout of the range.

One thing to note is that the Nasdaq 100 is the only major index that made new highs recently.  The Dow, S&P and Composite have not.  This type of divergence between markets often marks tops that last more than just a day.

Using Elliott Waves: As Simple As A-B-C

The euro rallied much higher than expected, and on the 1 hour chart it looks like it did so in a 5 wave move.  But in the bigger picture, as seen in the daily chart above, you can see there's no real discernible EWP pattern here.  So that means back to the basics.  With lower highs and a new low just prior to the current rally, we can still say the trend in the euro is down.  So at the moment, the bears have a good risk/reward ratio in going short now with a stop at the overnight high.

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.