S&P to continue fresh highs

Through the prior close… The 15-point recovery from Monday’s fresh lows hit its 1976.00 peak during the afternoon bias environment. That had fulfilled buying pressure from a signal 7 points lower, so it’s interesting that counter-trend sponsorship didn’t form. A pullback only drifted down through the close, testing the afternoon’s 1971.75 bias-up signal as support.

Overnight action’s new info… Narrow ranging had blipped-up to 1974.00 at Europe’s opens. Then a 6-point slide fell to 1968.00 — was recovered entirely within 4 hours. There wasn’t much delay before extending that recovery to fresh highs, which was being attempted by the original blip-up. Yesterday afternoon’s 1976.00 high was just probed by 3 ticks, while 1-minute RSI diverged negatively.

If, then… Monday volatility tends not to dissipate quickly. The overnight elasticity suggests as much. Almost effortlessly retracing and reversing the deep slide helps to confirm the market’s intent to retest last week’s highs. At least, that will continue to be the premise so long as the open hasn’t reversed back into negative territory — and preferably has extended above yesterday’s high.

First Trade… Exiting the open at 9:45 above 1978.50 would be likely also to trigger the 1977.00 bias-up signal at 10:15. Exiting the open under 1971.00 would be unlikely to trigger bias-up. Under 1967.25 at 9:45 would be likely also to trigger the 1965.00 bias-down signal at 10:15.

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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