One Day Up, One Day Down to Continue

The red bar, green bar trading range saga continues. Today’s low volume up day shouldn’t fool anyone. If the market stays true to its current character we expect today to be a down day, which should take indices and stocks back down to the bottom of the daily range. In other words, near the starting point of yesterday’s market. A few more days of this type of action appears to be in store and then we would expect a stab lower. If we can find a good short set up to take advantage of what is sure to be a very quick move lower, we will provide it. Right now there is so much neutrality in the market that finding the advantages becomes more of a guessing game and an exercise in futility. Never fear though. The market moves from cycles of inactivity to cycles of fast and furious activity.