Tuesday, July 21, 2009

Pull back but no selloff

The morning weakness had great promise getting into range which did trigger
some block trades but did you notice the volume just died and there was broad
based strength that picked up across the market.

Sellers did not step up and there was little reason to. So at the lows where it lingered
for ages (or so it seemed) there were just no sellers at all. Days like these have not been common at these extremes but it speaks about the true tension in the market.
We need a new balance area but where?

Barring any bad bad news, we might indeed seek a higher balance upwards in the long run. Volume still not impressive which concerns me but clearly inventory is changing hands between timeframes. The likely hood of a new balance area in the 975s is real before we test support in my opinion.

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