Monday, September 21, 2009
Midday Briefing for September 21st: Returning to the Range
Here we can see the market breakout this morning and the subsequent range trade on low volume, as we've stayed above the day's volume-weighted average price. We can see from the histogram at right that we are forming a "double distribution" day, with a volume bulge around 1054/1055 and another around 1059/1060. Both selling and buying pressure have been restrained as the day has progressed, reflecting reduced volume ahead of the Fed meeting. Oil remains weak; the U.S. dollar is off its highs of the day. Ten-year Treasury rates have moved higher along with stocks. As long as we remain above the 1056 level representing support from late last week, I'm treating this as a multi-day range market.