First, since I haven't bothered to put up a spiffy Twitter badge, I'll remind folks you can follow me on Twitter. It's fast; it's free; it's fabulous.
The range I've been mentioning – 1050 to 1070 – is still very much intact. The magenta tint below shows the oh-so-brief-yet-terrifying spike above the range, which just goes to show you cannot always trust breakouts (that goes for the downside as well, as we know!) As this range grinds on, it becomes more important. Take note also of the dense amount of activity I've put a rectangle around; this act as support last night as the /ES briefly took another dip.
In spite of the thrills yesterday, in the grand scheme of things, it was very, very minor with respect to price action (although, as I said last night, quite important psychologically). The quick dip the market took at the beginning of this month (remember that? it's tinted in blue below) was much more substantial, and it only took a couple of days for the entire import of that drop to be eradicated.
The market needs to drop below 1050 to break its little consolidated zone, and it needs to break about 1045 to break that minor trendline. I'm relatively "light" on positions right now, since caution will continue to hold sway until we have a firmer grasp on mid-term direction.
