Breakdown Breakout

Looking across the indexes for some indication as to which direction will prevail in this range bound action reveals a mixed picture. The Nq100 remains the weakest with lower weekly lows, but the SP500 and the DJI are also leaning slightly south of the weekly range mid point this morning. All are at or near the tipping point as demonstrated by this week's swings and morning reversals. Traders are willing to believe in breakdowns or breakouts, but the daily price action can be very misleading. Most times it pays to look to the weakest link, in this case the NQ100, to see how the battle goes. Since the NQ100 has already taken out last week's lows (1763.75), it is important for it to stay and close above them.