The Wonky Market

If I didn’t know any better I’d say the Market Gods are toying with us.  While they’ve always had an affinity toward confusion, I fear it’s turning into obsession.  Of all the words that could be used to describe the current market, wonky is stuck in my mind.

Charting purists would tell you the more times a support or resistance level is tested, the weaker it becomes.  But, boy if the current market didn’t try to make you think otherwise.  It seems we’re in the midst of a monster ping pong match between one gnarly beast of a bear parked just north of 1200 and an equally intimidating bull sitting menacingly at 1120.  I’d be lying if I said I wasn’t full of anticipation during the last two or three swings.  After witnessing the strength of the bear’s serve last week and the rapidity with which it approached support, I was all but convinced 1120 was a goner.  But, alas, the bull will not die.

Yet another favorite mantra of the chartist is, “a trend in motion stays in motion.”  The market seems to have been broadcasting a new message of late that “a range in motion stays in motion.”  Observant traders who both heard and heeded this message early are reaping the rewards.

One of these days the range will of course give way to some type of trend.  When that day comes, though, is anybody’s guess. Despite last week’s free-fall, this week’s resurrection has brought us once again… wait for it… back to the dead center of the range.