Monday, April 11, 2011

Watching Grass Grow

Today's market is mixed and lackluster, it reminds me of the summer doldrums when you couldn't find a trade anywhere as nothing moved. Interestingly, Monday's historically are the biggest gainers of the week and responsible for most to all of the gains for the week. So far this market is like watching grass grow, which always makes me nervous and on alert.

 The Dow is the strongest today, but remains in the lateral range so technically it's doing pretty much nothing.

 The IWM is one of the weaker of the averages, but has managed to find some support at Friday's lows.
Look at the volume on each of these, excruciatingly low.

 The QQQ another weak one, basically having an inside day within the range.

The SPY also is having an inside day with very little going on, some higher prices earlier were rejected and the averages look like they too are in triangle-type consolidations as well; that means that volatility will die off and Bollinger Bands will narrow, that usually leads to a highly directional move, that's why this type of action makes me anxious.

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