Tuesday, April 04, 2006

Mired in a trading range

Nothing much to add. We have been mindlessly zig-zagging in this trading range for the last couple of weeks. To me it appears like a high level consolidation before the breakout, which are supported by the internals.

NYSE cumulative A/D line - new highs (both daily and weekly)
Nasdaq cumulative A/D line - new highs on daily
High TRIN, High P/C at or near market highs

There was a small change on the Nasdaq MCO today. So expect some big volatility in this index over the next couple of days.