Sometimes I expect this market to just drift back and forth looking for some liquidity to place positions. The SandP 500 is up slightly on Thursday as we shift back into the consolidation zone we’ve been in for over a week. At this time of year, no one is really trading in the market, so it makes perfect sense for us to go back and forth. Finally, think this is a situation where you’re better off leaving it alone, but since I know many of you won’t listen to me on this, I’ll give you my best guess. Advertisement Test your technical skills now! OPEN FREE DEMO ACCOUNT More likely than not, this is a market that will swing back and forth over the next few days, so if you are a short-term trader, this could be a nice environment for you. However, the biggest mistake you can make is loading large disks. That’s because the wrong news or headline can cause the market to jump 30 points against you before you know it. Remember that there are not that many participants. This means that the movements can be quite unpredictable and huge. Instead, we can bounce the distance within 10 points. Markets drift back and forth Remember that on Friday the market is quiet and then closes a little early because most Americans are busy with New Year’s Day. I understand that many European traders go back and forth between the SandP 500 futures and CFD markets, but the reality is that all the real volume comes from New York. I think if you look at the 50 day EMA which is at 3900 you probably have a dead market for the next few sessions. On the other hand, a break below the 3800 level opens up the possibility of 3700, then 3600, then 3500. Obviously, it will take some momentum to move the market one way or the other, and the next real fundamental news will come. finally next week on the US jobs numbers. Sometimes I expect this market to just drift back and forth looking for some liquidity to place positions.