Sideways Trading Persists

June 27, 2006 · Print This Article

The market tumbled today as inflationary concerns continue to plague the bulls. We are still well within the range that has been carved out over the last few weeks but I would imagine after Thursday’s Fed annoucement that will change immediately. As I have stated before, we should expect to see some highly volatile trading immediately following the Fed release. However, do not be fooled by the intial direction because it is often a head fake.

Volume is extremely low as traders eagerly await Thursday’s meeting and many have taken off for an extended July 4th vacation. Must be nice! I am continuing to work out the details of our new strategy and I might have to delay the information for one more week. Either way the strategy looks very promising so far. I can’t wait to have it up and running.

The QQQQ’s took a hit today and are nearing oversold territory. If they continue to move south and hit an oversold state a nice set-up could occur. Keep an eye on this one. Take care and have a wonderful night.

RSI Wilder (5) for June 27, 2006