Good evening StockBandits!
Stocks gapped higher this morning after AAPL but pre-FOMC, and the tone quickly turned sour. It seemed as though traders couldn’t wait to sell the strength, and with all the gaps being filled of late, why wouldn’t they feel that way? Today’s lasted only about 90 minutes, erasing 1% advances with relative ease. The pre-Fed chop was followed by more weakness into the closing bell, as apparently some threw tantrums that the Fed didn’t offer better clarity. Have they ever?
So tonight, here we are once again analyzing the day-to-day moves within the trading ranges, and it really has grown stale. A break could occur any day, although at this point we’re facing the lower boundaries rather than the upper ones. Nonetheless, until it actually happens, we’re still caught in a fickle market which could just as easily reverse back up like it has so many times from short-term pullbacks since October.
The one element that stands out to me tonight is the fact that some lower highs may be in the process of being established. That will need to be confirmed with a new correction low (since the December high), but today’s high-volume decline looked rather convincing. Regardless, we should abandon judgement until an actual range exit is seen.
Let’s get to the charts.
Bullish Watch (click for charts)
Bearish Watch (click for charts)
Trade Like A Bandit!
Jeff
