Rolled Into Breakfast Sushi

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As I discussed yesterday, the most probable scenario would be some sideways action in the near future. The bulls were looking to avoid a massive down day at all costs, while the bears need volatility and fear to stay elevated. Thus far this morning, we have seen an aggressive upside head fake that has since reverted to the flatline. With the market behaving in this manner, you are better off not overanalyzing the action, and especially not overtrading it if you are a momentum player.

With gold, Treasuries, and volatility all down today, the bulls should be content with what they are seeing. The idea is not to expect an up 3.5% session everyday, but rather to look for subtle changes in market character. Even if eager traders get rolled up into breakfast sushi this morning, the overall picture is slightly better with flattish action.