Thursday October 03, 2013 08:25
The market continues to be a tight trade. The pop yesterday was the result of mediocre ADP numbers, which reinforced that tapering from the Fed was not an imminent event, and the continued insanity in Washington. The break of $1,307 ignited some momentum, but resistance at $1,322 capped the run. It’s important to remember recent support/resistance lines, as most traders are taking short pops at the market and are quick to exit. In my opinion, as we stated early last week, the market continues to have a heavy fundamental feel, but, traders continue to be hesitant to be aggressively short. The result is the choppy action we are witnessing. Too much emotion in this trade to suggest a tight range, but I will go on the line and “ guess” $1,297-$1,312 if you just have to trade. The other option is watching the President’s Cup.