Traders have been waiting for and anticipating a breakout for eons on the Dow Industrials and the S&P 500. With each potential catalyst, more people try to get a jump on it, betting on the direction of the ultimate breakout.
Here's an intraday chart of the S&P futures. The green dotted line is yesterday's high while the red dotted line is yesterday's low. We've seen so much of this whipsaw lately. Gap down open to test yesterday's low, and when it doesn't go down, it shoots straight to yesterday's high. All breakout players get whiped. Again.
04.03.05 15:27 #