Again we see the stock market dip down and then rally back up to close firm. I mentioned last night that the current market action is looking like likely absorption. It looks even more like absorption behavior after today’s action.
Ranges have narrowed, but you can see that the S&Ps have not given up any ground for the past five days.
If the absorption is successful, we will see the stock market rally up and over the 1283.50 high put in on October 27th. We are only a handful of points away from that level.
Today’s range was fairly narrow and also inside yesterday’s range. We can anticipate that the market will move out of this area soon. Day traders get prepared! Watch for trend day conditions when it does.
Leave a Reply