Last night’s price action was equivocal at best.
- The market retraced approximately 50% of the current swing up. If the low holds, the 80-min projects a target to 1440 to 1390 (if this is a bear rally).
- The normalized volume was the lowest for the past 14 days except for Jan 14 but still in the mean +3 zone based on data prior to the current volatility.
- The range yesterday was 31 points which is large if we take the view that it was supposed to be a small range day.
Tonight may throw up some clues on the volatility of the market. This series will end tomorrow. Once we have the FED rate decision, we may be able to determine whether the bull or bear is alive and well.