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Today's technical outlook: Sideways market will challenge traders

From September to early November, the volatility was staggering, and if you were on the side of the major trend (down), you've made money. But now traders are grumbling that there just isn't enough volatility to make trading profitable.

On Friday, Standard & Poor's reported that in the past 22 days, the S&P 500 has remained between 805 and 874, or within an 8% range. But during the past 12 days, the closing price range for the "500" has been only about 50 points.

Continue reading Today's technical outlook: Sideways market will challenge traders

Near term mixed signals for stock market

A few sentiment indicators point to a market that might be in a tight range for the next few weeks.

After an excellent fourth quarter for stocks, investors fear has come back quickly. With a minor drop in the Dow, investors withdrew $838 million from stock funds during the first week of 2007, according to AMG Data. Investors were quick to turn to less risky investments such as money-market funds, which drew $891 million, and taxable bond funds that attracted $1.6 billion.

Conversely, the AAII index has seen investor bullishness jump to 49.1% up from 39% three weeks ago.

Such mixed signals suggests investors can be patient. I'd wait for the AAII index to come down below 40 before I'd put money to work.

Symbol Lookup
IndexesChangePrice
DJIA+72.8112,874.04
NASDAQ+27.512,931.39
S&P 500+9.131,351.77

Last updated: February 13, 2012: 05:14 PM

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