On The Close and Recap

So we had a big paper seller on the opening bell, locals got long and they were able to bid it up past yesterdays high but didn't find any buyers to sell to. The market drifted back down to the opening range and found support for another trip up near the highs. For a brief moment i actually thought we may get a close below the opening range but instead we continue to build higher and higher value. The 8 day SMA of value is at 1,187.81 as long as we are above this number we are bullish.

On the cash close there were paper sellers with the exception of Merrill Lynch, they were buyers. When Merrill is a buyer you want to be a seller. They are like the 'ol Lind Waldock of yesteryear. We love to hear them come into the market because we know price will trade against them.

For tomorrow we have housing starts at 8:30 and consumer sentiment at 9:55 ET, I think this report gets out early to subscribers so be careful if you don't have a cush on your trade by then. If we open above 1204ish we are likely to see higher prices.

Tomorrow is Friday and the weekly settlement is an important area. Last week we settled at 1192.50. I think we also have options expiring so we could get some volatility near the close.

One thing esp. noteworthy is the wedge we are building in the Vix over the last few days this combined with low ARMS reading may be a warning of a trend change or at least the long awaited pull back. But again as of this close with higher value and above the OR we are still looking north, no sign of a reversal today.