We continue to bounce around the 2 pivots that I mentioned yesterday. 1140 to the downside and 1150 to the upside. Our low today was 1140 and the high was 1148. Until we break one of them, we should be stuck here.
However the market is starting to show some weakness.
It is also running out of room in this triangle, so it has to break one way or the other real soon.
I have mentioned this before, but choppy action like this, especially when it's big swings usually mean there is some sort of top coming into play.
As you can see from those highlighed points, most tops have that volatile and choppy look to them. Most bottoms are V shaped, but there are some exceptions. Either way, the point is that choppy action usually points to a reversal coming soon. This is a sign of classic distribution. Strong money handing off to weak money.
We also have some big economic data in the next 2 days. I believe GDP is tomorrow and ISM is on Friday, along with some other key indicators, so expect a wild ride into the weekend. I think the action in the last hour was just a taste of what is to come.
The Euro also continues its upward retracement.
The economic data coming out should impact the Dollar, thus impacting the Euro.
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