103.00 Resistance

We've hit the proverbial "wall" in our market, or so it would seem. There is serious resistance at the 103.00 price point which is currently controlling our market. Fortunately there seems to be support as well. When resistance and support converge, we often times refer to this as consolidation. Market consolidations typically result in breakouts for better or worse.

With that said, this does not feel like we are gearing up for a breakout in any particular direction. I do not expect our market to move off of this price point today. Friday's are typically slow trading days, and it seems like investors are content with where our market currently stands. This may change on Monday. All things considered, it feels like we are going to trade along the 103.00 resistance line for a little while. If I am right and we do sit on this resistance line for any significant period of time (significant being a matter of days in our market), then we should expect a sell off. If we see breaks testing this line of resistance consistently during this period of horizontal trading, it may be a sign of future buying.

Right now our market is in the hands of headlines... poor economic indicators will help keep rates low. Signs of recovery either in the States or internationally could lead to a sell off.