Six Signs of a Range-Bound Market

5/9 - "After a period of volatility such as we had during the first quarter of 2008, it is understandable that traders expect moves to extend. In a range market, however, reversals of market moves are the order of the day....Here are several cues I rely upon in gauging a possible range day."

"1) Other, related markets are range bound...2) Little news...3) Decreased volume...4) Narrow breadth...5) Sector rotation...6) Initial trades don't work"

"The main thing is to not overtrade these narrow days. If a market is trading in a range, the best trades are to fade moves around the range extremes."