Wednesday, September 2, 2009

09.02.09 - Pause after the Fall

Equities put in an early floor near SPY $99.60 this morning after their multi-day drop.  However, we have seen little conviction towards a recovery attempt as yet.  That said, volume has slowed during the last two hours, suggesting the momentum slide has neared an end for now.

The Cumulative Tick and Advance - Decline lines are going sideways, suggesting a range trade environment.  Nevertheless, I'm "hopeful" for an afternoon bounce, maybe after the FOMC minutes.  That said, if we can't see more upside vigor going into the close, it may not auger well considering how short-term oversold we have become.  Meanwhile, I'm watching GLD continue its powerful breakout...

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