Monday Market Outlook (Tuesday Edition): "In the Middle of All the Noise"
Every Monday, Benzinga Radio brings you trading intel from the S&P Futures Pit of the Chicago Board of Trade with TradersAudio.com’s Ben Lichtenstein.
Will the good times keep rolling after last week’s unexpected buying frenzy? Maybe, but don’t expect the S&P to break its range without significant momentum, says Lichtenstein. “There are a lot of people who are saying this could be an upside breakout – I don’t see the catalyst for it. I don’t see what’s changed in terms of trader sentiment. Any activity above 1200 has been range extension or failure breakout.”
“We’re in limbo, and while we’re in the upper extreme of that, we’re certainly in the noise again. If you look across the board you’re seeing it in all of the major markets.”
Nevertheless, watch for new balances at the upper extreme of the 1100-1200 range.
“It’s a lot of chop here, and I certainly wouldn’t be surprised if this market were to rotate back to the downside. We’ve done it ten times over the last ten weeks. Why not do it again this week?”
We may be at the top of the range, but markets are still in no-man’s land overall, showing fundamentally horizontal activity for the past few months. Be ready for that vertical movement, and the profit-taking opportunities it will bring. Make it a safe and productive week – we’ll see you back here next Monday.
And for our full range of podcast content, visit the Benzinga Radio homepage.
© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.