Quick YM Analysis 01/17/07

[TinGull]

Yesterday was totally lackluster for the YM. ER got the gold star.

Our TPO count yesterday favored the buyers 110/153. Value placement was inside of value from Friday and the profile looked like as statistical as you can get.

We did have a ledge form at the high of the day (12637) where 3 TPO's built there. Interestingly...it was the first TPO and the last 2 of the day. Right now (pre news...PPI and cap utilization) we are trading a little above that high.

I would think a break into the 580's would spell trouble for the bulls in the short term and a break into the 650's would be trouble on the bears side. Right now we're in a tug of war.

The value area is small for today. Just 24 points. If we find ourselves opening outside of value and are fairly close to the VA...I'd say within 10-15 points...I'd look for a break into value to be a possible play for a continuation down to the VAL. If we are inside of value....it's anybody's guess. Waiting for a break of value and acceptance outside of it would be the best way to capture profits.

Till then...