Markets consolidated in a narrow range on Wednesday, forming not only a bullish inside day on SPY, the Nasdaq and the Dow, but also creating the narrowest range in the past 4 sessions. As many disciples of Crabel’s method know, this particular pattern usually occurs right before a large range expansion. We’re disciples of volume here, so all we can say is the big picture does show a volume contraction over the past few sessions (which would support the ID/NR4 theory), but as far as the direction of the resolution, only time can tell. The 200 dma test still seems likely to be in the cards for now. -MDLogin. Not a Member? Join us.