Squawk Evening Update: Boring

Today was about as boring as it gets.  The S&P 500, NASDAQ-100, Russell 2000, Dow Transports, and many other indices all put in new highs today.  But just as one imagines the hottest new cocktail dress might be the hit of the party before showing up to find everyone else wearing it, a new high just doesn’t hold much interest when they come so often.  Also boring was the extremely narrow range observed.  Had it not been for a modest sell-off late in the day, the DJIA range would be the narrowest since February of 2007.  As it is, the DJIA range was the narrowest since April 12th.  Barely moving is certainly boring.

Along that same theme,  indices were nearly unchanged on the day and many were slightly down.  The DJIA was one of the few that didn’t make a new high on the day, but closed slightly higher at +3.63 points.  Since we had already closed near highs on Friday, putting in additional new highs in some places does not materially change many counts, especially since we’ve hardly moved on the day, not much has changed.

We will study the wave movements in the DJIA overnight  to see if there are additional clues, but right now, the only thing that we can say is that we took out our five minute EWO level that we published.  That just means that the five waves up which ended Friday afternoon is likely over.  It doesn’t preclude the start of another five waves up from near current levels.  To eliminate those possibilities we would need to see larger EWO retracements in longer timeframes.  That small development notwithstanding, little movement means that our general expectations have not changed much. Perhaps there will be overnight developments in the futures for us to discuss in the morning.  If not, we’ll be here to restate our current outlook and add in whatever additional observations come from our detailed study of the wave structure.