The weakness in the market was obvious as prices began at the highs and ended at the lows. Activity was light as reflected in the volume numbers as well as the minimal changes in the COT report. The report shows that momentum funds were sellers meaning that the weakness was not a pre-holiday liquidation but rather an absence of traders.
Today selling intensified but good support was present. Spreads weakened only as a result of forward buying, probably by the consumer sector, combined with front selling by funds and others. As the market firmed later in the day, after stopping almost exactly at Nagual's daily support level, spreads snapped back and closed nearly at unchanged. The market continues to be a bullish market.
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