Tuesday, October 17, 2006

S&P Note

The December S&P's just printed 1373.50. Here is my last comment on this market.

I hadn't expected the market to trade above today's open at 1372. I think this means that the S&P's are headed up to 1376. But I still think that the market is in the process of trading sideways and that another drop to 1364 and more probably to 1350-55 lies ahead.

1 comment:

Anonymous said...

Great blog!


Can you elaborate on a statment from last week? Why is low volatility a sign of trader skepticism?


I must point out that this market shows little volatility as it continues to advance. This is a very bullish sign. It meanst that skepticism dominates traders' thinking, not enthusiasm. In such circumstances the market's trend will continue to develop in a pattern of higher lows and higher highs until volatility shows an obvious increase.