eMini Summer Trading Ranges
The time has come to break free of the 2010 summer trading range. As you can see from my chart (Daily Chart of eMini SP 500), we had roughly a 100 point summer range. It is not unusual for trading over the summer months to develop a horizontal range similar to the rectangle in my chart.
With the summer holidays coming to an end and Labour Day just around the corner most traders are back at their desks eager to put on some trades and create some volatility.
On Friday we saw a dramatic morning reversal where we opened lower put in new lows, only to rally hard in the afternoon and close on the dead highs. Today was the mirror image, we opened and although we didn’t put a new high we did trade higher off the open, and then sold off all afternoon to close on the dead lows.
All of Friday’s gains were essentially negated by today’s action.
The one spot I would like to point out is the lacklustre, low enthusiasm indecision pattern that formed on the Di + / Di – indicator (the accompanying indicator to the ADX). This happens when both the Di+ and the Di- point downwards with roughly the same slope. The interpretation being that there is less strength from both the buyers and the sellers, in other words today’s selloff was less enthusiastic than Fridays rally.
That’s all for today, be sure to keep following the Blog as I post my analysis, thoughts and general comments on the eMini SP and other markets
Category: Market Commentary
