Market Remains Range-Bound Even With News of Another Strong Quake in Japan

Nothing has changed in terms of the market finding a direction. Even with a spike in volume yesterday morning following the news of another 7.1 earthquake in Japan, the ES couldn't break through the lower consolidation range support.

ES 60 Min Chart Showing Six Day Consolidation Range

I will await a breakout that results in a daily close above the upper consolidation channel or a breakdown that sees a daily close below the lower consolidation channel before gaining confidence in a new directional market move. Trading action in the day that follows will need to see a continuation in the direction of the break-out to confirm the move. If ES sees a confirmed move to the upside, I will look to buy a retracement back into the prior resistance of the upper consolidation trend line. I will do the opposite in the case of a confirmed break below the lower consolidation range.

In either case, I expect choppy markets and at least another round of volatility before a climb to new highs can begin. If markets sell-off again, it will provide a great opportunity to enter swing long positions in US equities.