Ym 01/09/07

[TinGull]

Crazy day today. Was aware of downside potential from the TPO count of Fridays profile, and today the sellers outnumbered the buyers 252/150. We had to distributions and a very wide value area for tomorrows trading.

A 110 point range was called for by superimposing Fridays range of 102 points onto todays trading as we opened up right inside of value.

What might we expect for tomorrow? Looking at a daily chart of the YM you can notice that volume today as well as volume last thursday were lighter than the 2 big down days we had. With today being a fairly balanced day overall, but sellers way outnumbering buyers...we may look for some more downward to sideways action. The wide value area (71 points big) will give the YM some space to churn if it wants to. We closed outside of it, so we'll see what tomorrow brings.

I've added the past 3 profiles to see what has been happening, as well as a daily chart of YM. Tomorrows action depends on how we open. If we open above VAH...I'd look to buy a pullback to it around 480. We may see a short term relief bounce soon.