Looks like an interesting day ahead, eh, bears? Tomorrow morning's jobs report will have everyone's attention, but even the sneak peeks we're getting at the economy this morning have provided enough ammunition to take the /ES down a full percentage point.
Looking at 2010 so far, we spent the first few weeks trapped in a range, which we broke to the downside on January 20th. We've spent the past few weeks in a new and lower range, and I've mentioned the "threat" of pushing above the high end of our current range and getting back to the lower end of the prior range. It still could happen, but recent action makes it a little less likely.
It would take an unexpected catalyst to knock us below the lowest end of our current range, because at that point, people will start to really freak out. Trading inside these ranges is a bit of a drag, but it's important to be "in position" prior to breakouts, since the movements after a range is "escaped" tend to be relatively instantaneous. We may well spend the day grinding around roughly wherever we open.
