An incredible lack of volatility this week, as the S&P 500 has stayed in a 11 point range the entire week: 1328 to 1339. If not for the gap ups Wednesday and today, the market would be negative on the week but due to the overnight/premarket action we've essentially been stuck in quicksand.
S&P 500 intraday this week - click to enlarge
On the plus side, this is the first real consolidation after a big rally we've seen in over half a year - that is more normal action than the straight up action (90% of the time) or straight down (10% of the time) experienced since QE2 unleashed as a concept to market participants. As always, the longer the sideways action the more powerful the ensuing move - either up or down.
Best Of FMMF
- 1: Warren Buffet Piles on Europe
- 2: [Video] Jim Chanos Returns from Europe, Even More Bearish on China
- 3: A Chart to Open Our Eyes - Staggering Changes by Multinationals in Employment Behavior 00s vs 90s
- 4: Futures Blasted on Dexia Woes... and Poor Preliminary China Data
- 5: Market Working to Worst Thanksgiving Since 1932
- 6: Et Tu, German Bonds? Poor Auction Raises Eyebrows