S&P: Procrastination doesn't pay

Probing yesterday’s low, significantly.

Yesterday’s “session-long decline” failed to probe a fresh low during its last timing window. Buyers expended a lot of energy into the close without gaining traction for the effort. So, gapping up was the only morning rally that would be credible. Otherwise, Wednesday’s missed low would be produced.

Additionally, the missed low would be exacerbated to compensate for the delay.

Last night’s probes above yesterday’s highs to 1940.50 resistance were already being rejected before today’s opening print at the 1933.50 bias-down signal. Already, that made a rally unlikely, and fresh lows likelier. Bias-down did signal, and already its 1928.00 bias-down target was met.

Additionally, room for noise below it to 1926.50 has been met already, too.

Oversold RSIs on both touches of 1926.50 require its eventual retest. The “close-quarters double bottom” formed by the retest suggests its bounce will fail. RSIs would likely diverge positively on fresh lows. It’s possible for this morning’s selling to end the multi-session pullback. But sellers get every benefit of the doubt unless the bias environment were exited above 1933.50 or 1935.00.


Ed Note: Each trading day traders can listen to live, streaming squawk box commentary on FUTURESmag.com coming directly from the S&P trading pits in Chicago.

About the Author
Rod David

Rod David develops analytical techniques that are designed to efficiently identify targets and turning points for any liquid stock or market in any time frame. He primarily analyzes S&Ps, generating several round-turn candidates daily. Rod publishes "Trading Plan" and more each session at the blog http://IfThenSignals.com.

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