I thought Monday we’d get a rally starting mid to later week, but I thought we’d see more downside and a test of S&P 1120. Didn’t happen, and that rally already happened in the first 3 days of the week as we are inching closer to the top of our 100 point range (1120ish to 1220ish on the S&P 500). Yesterday’s volume was very low, just about half normal going into the last hour. Today it’s quite quiet again – and after this morning’s shake out we continue to grind higher.
We can clearly see the down sloping 20 day moving average was where the market was rejected last time (over 1225 last time, currently 1218 and falling)…. and of course in news events Europe began to matter again at the exact same time.
It will be interesting to see if a news event everyone knows will happen a week from today (Operation Twist) will drive the market up through resistance. Other than that, we are just in a range – and been stuck here for a long while.