Market Analysis for Sep 10th, 2003

As we expected, we did peak yesterday, which was "turnaround Tuesday," and we're having "follow-through to the downside Wednesday," as it were. The interesting part about the action so far today is in the morning you had first-hour weakness, which stopped right after the first hour, but the stabilization period during the second hour of trading turned out to be a very feeble one at best. We are now getting a little rally now as we are in the third hour of trading, and I think it could probably last through the noontime lull, as I like to call it. That means we could probably grind higher.

In general, though, today's action is important from the S&P point of view using the September E-Mini contract (which will roll over to December in the next day or so). You may remember that the breakout point of the three-month trading range we were in between June and August/September was about 1015-16, and in the last two days the S&P has come down from almost 1035 to the low today in the September contract at 1015