Trader's Daily Notebook: We Are Trapped in a Momentum-less Market

Those of you who participated in Friday's E-Mini S&P 500 futures Es auction don't need to be told how dull a session it was. At roughly 875,000 regular session contracts traded over an intraday range of 5.75-handles, I can't recall an Es auction with a narrower range. To those readers that have asked what, if anything, we should interpret from this quiet trading: I really don't have a clue.

The lack of follow-through above 2390 (noted on the chart below) is a pretty good indication that initiative (breakout) buyers lack a sense of urgency. But when you consider how low trade volumes have been (even on the occasional down day), how muted the day timeframe volatility has become, and the total absence of downside follow through, it's fairly obvious no one's in a hurry to sell either. The bottom line is we're trapped in a momentum-less market which, while still supported by the ever-resilient dip buyer, remains unattractive to the more aggressive, initiative buyer....376 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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