The Highlands

The Nasdaq is trading a touch higher after a relatively quiet and balanced overnight session.  As we roll into the holiday weekend the economic docket is quiet, with only new home sales at 10 am and some markets closed for trade at 2pm.

Given the weekend context and the strong progress of the week, we may see some profit taking where sellers are more prevalent then they have been during the rest of the week.  Yesterday the buyers continued to show control on the short term where value migrated higher without any overlay of the prior day.  The action dried up a bit and as a result we printed an oddly shaped profile with almost two distributions.  We may see this area of low volume more thoroughly auctioned today:

The intermediate term is really attempting buyer control here, and I will say they are in control of the current swing, but it is just barely confined to the intermediate term balance.  We exceeded the prior high of the intermediate term balance yesterday by two points.  However another leg and sustained prices above yesterday’s high would be needed to establish a strong foothold of the intermediate term time frame by buyers.  I have noted a few other key upside levels as well as our two point range extension below:

Don’t lose sight of the big picture.  These are important prices we are trading:

Volume may be light today, so have well established price ranges and try not to get whacked by the day traders.