Monday’s opening action was a battle… between weaklings. Neither buyers nor sellers actually took control. In this way, the afternoon’s bias signal mirrored the morning’s. How fitting, then, that the cash session and futures closes were unchanged from Friday’s counterparts…
Pattern points… (Setups and technicals)
The pattern is essentially unchanged from Friday, except that 1362.00 support has been much more chipped away. We’ll know that for sure, if its testing were to now produced a fresh high above 1369.00. At that point, there would be no bullish reason to revisit 1362.00.
New highs are not required before breaking under 1362.00 — there is no unfinished business above. But a failed break higher would be more bearish than simply to begin tumbling from Monday’s relatively narrow range.
Similarly, a probe of 1369.00 would not be required to fail. Fresh highs could be tested first up to 1374.00 or 1378.00.
What’s Next… (Outlook and opportunities)
The econ calendar heats up Tuesday, and Wednesday’s expiration signal will become relevant.
Look for at least one update overnight or ahead of the Morning Market Tour… My thoughts on the day’s econ calendar are linked here.