Another day passes
without the Dow closing at new all-time highs. It'll be a few days
longer yet until the Nasdaq and S&P both do the same, but why ruin a good
media story by cluttering it with detailed facts?
Anyway, we should expect to see a new closing
high in the Dow before market action heads off into the next directional push.
Today marks the end of this quarter, new money flow next Monday could start
next week off in upward ascent, too. One way or the other, media pundits will
likely get their story climaxed. Hopefully it's sooner than later so we can
all move on to more important matters in the market.
S&P 500 futures bobbed around in a 7.5pt total
range yet again. They flagged lower to S1 values by lunch, and then bobbed
their way back to R1 values by late afternoon. A listless, lackluster day
where price action remains pinned to the window dressings by big money funds
who create their own performance paychecks this way. Typical and predictable,
each month & quarter!
Russell 2000 futures traced the same general
pattern, albeit in a much wider dollar-range value by comparison. Early
failure at R1 led to a trip down below S1, then back to the pivot pin. As with
all other stock index markets right now, small caps await the next directional
move to come.
S&P 500 cash index prices at new year 2006
highs. Next magnets above are in the upper 1360s and then 1390+ zones.
Meanwhile, semi-conductor sector remains way
below current year highs. Right now price action wedges for the next move
ahead after failing initial tap of 62% hi-lo swing and 250dma value. Countless
tech bulls and other market watchers are eyeing the 475 level as green light
for a major market rally to confirm. We could see that at any time... and we
probably MUST see that for a sustained rally to emerge.
Summation
Today could be a low-range venture. Unless
buyers step up in a big way, more sideways chop on program-driven surges is
probable. Next month has the tendency to be highly volatile and active.
September certainly was not. The SPX has a total range of 41 points for the
month, traversed in rather dull fashion. Once the end-quarter pins are removed
after today, things could get interesting in a hurry!
Austin Passamonte is a full-time
professional trader who specializes in E-mini stock index futures, equity
options and commodity markets. Mr. Passamonte's trading approach uses proprietary chart patterns found on an intraday basis. Austin trades privately in the Finger Lakes region of New York.
