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11-12-13 example: SPX extremely light volume narrow trading range suggests participants await return of Bond traders. Resolution of narrowest range in past 7 sessions should determine direction of next durable trend.

11-12-13 SPX Daily Headline Chart

Volume was extremely light with most participants sidelined awaiting the return of Bond traders following Monday's U.S. Veterans Day holiday. Primary equity indices' trading ranges were extraordinary narrow as well with all remaining within last Thursday's sell-off trading range. In fact the narrowest range in the past 7 sessions defines an "NR7" pattern which normally precedes an greater than normal wide range session. The direction of the NR7 resolution should provide durable trend direction clues as well.

Last week's volatile trading has most participants on edge and somewhat uncertain. However as long as moving average support levels are not violated with confirming robust volume, the prevailing ascending trendline remains intact with probes lower considered buying opportunities. With that in mind, keep a close eye on broad market internals (e.g., NYSE advance/decline line) to monitor the strength of any intraday selling. If early selling intensity is neutral, lower Market Zeitgeist signals and Implied Volatility Band support may offer interesting profit opportunities. Especially if confluent with daily moving averages.

The overnight session was very quiet with capture of either equity futures overnight high or low after the open likely to point in the direction of an early intraday trend. Be exceptionally vigilant for price reversals at buy/sell signals if internals are not too extreme. As always, review the "Traders Tips" to the right.

Daily enhanced SPX chart with implied volatility bands:

11-12-13 SPX Daily Enhanced Chart

Confluent Daily 1.0 Implied Volatility support and the 8 day exponential moving average (~1761-1764) is an attractive zone (for Buyers) if selling is not too extreme.

Daily enhanced NDX chart with implied volatility bands:

11-12-13 NDX Daily Enhanced Chart

Daily enhanced INDU(DJIA) chart with implied volatility bands:

11-12-13 INDU Daily Enhanced Chart

Daily enhanced RUT chart with implied volatility bands:

11-12-13 RUT Daily Enhanced Chart

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