Good morning everyone.
Today is Columbus Day and which means banking, government agencies and most of the big financial centers will be closed today. What does that mean? After the morning pop, I expect the market to get very choppy and volumes to drop off quickly. As of now, the futures seem happy suggesting a gap up of about 60 points. At first glance, that seems exciting but then we remember all that really does is recover the losses from Friday and really doesn’t change anything.
We must see a close above resistance and then it must prove it can hold it as support before there is any reason to get very excited. It would be wise to keep that in mind if or when you are considering new positions. If you think about it a light volume day would be the perfect time to set up a head-fake breakout only have it reversed when everyone comes back to work on Tuesday.
Although I’m very happy to see some bullishness today trusting that it’s real after more than a month of big chopping price action is another story.
Trade Wisely,
Doug
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