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S & P - Lacks Stability. Patience required.

Tuesday  11 May 2010

 There is no compunction to be involved in the markets everyday, save for
the non-professionals who "feel" the need to catch every move each day. 
We have talked about the parameters being established for a developing
trading range, and it would be a healthy process for the market to undergo
at this stage.

 You can see why the 1180 area is important as resistance for any rally. 
That level acted as previous support, back in the old days when the market
was calmer and ranges were smaller.  1185 is also where supply took over
in the market, last Thursday, so watch HOW the market responds when/if
price rallies to this key level.

 Initially, the 1136 area may offer some support on any breaks.  It was the
Friday high, noted by the horizontal line just below current trading.  Should
that give way, then we can expect a retest of the Thursday-Friday lows...not
all at once, but over a period of several trading days.

 There is no edge to be had in trading either side of the market, for now. 
Up 46 points one day, down 13 points another day leaves a lot of room for

 Wait for an edge.

S&P 120m 11 May 10