Monday, June 27, 2011

Chasing Our Tail; 16th Day in this "Box"

For all the news developments the past few weeks, the S&P 500 has been stuck in a 'box' for over 3 weeks now.  Roughly S&P 1260 on the bottom and upper 1290s on the top.  Bears can claim that the market is working off an oversold state by churning, rather than rebounding.  Bulls can claim the 200 day moving average is holding.  So a little something for everyone.

Usually the longer the market goes sideways, the more powerful the ensuing move.  But there is little to get excited about right now until we break out one way or the other.  Until that point selling/shorting at the top of the box, and buying/covering at the bottom has been the no brainer trade.  It is working yet again today.

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