Stuck In a Range

Well today lived up to its billing with only a small loss to show for all of the increased volatility. Yesterday I said that any move up in the morning would be suspect, and it proved to be as the futures failed to hold up prior to the market open. Overall, the action is near term bullish with the sideways consolidation. However, one could consider the above pattern to be a symmetrical triangle which would point to the next up move being the last of the rally from the May low.

On the other hand momentum and breadth continue to deteriorate. We will just have to wait and see which way it breaks out. One interesting fact is that the SP-500 has closed at/or below the 200dema 7 out of the last 8 trading days since it first touched the moving average on June 1.

As I mentioned on June 5, June 12 is a turn date. So we could see another attempt at a breakout fail tomorrow or Friday.

I continue to wait for a suitable re-entry point in the indexes. Trading a breakout is fine for daytraders, but I would like to see a pullback first.