I woke up this morning to the first sight of snow on the ground. It’s just a light dusting, mind you, but even the slightest glimpse has me in a better mood than last night. Let it snow, let it snow, let it snow.
I got all bulled up yesterday afternoon after seeing the S&P thoroughly auction the EXACT price range I had laid out in the morning yesterday and then break higher. Typically, this is a very bullish event. It says to me, the buyers and the sellers came to the town square, exchanged their paper while wearing top hats, the sellers were quite pleased with the amount they had sold and went home for the day, but more buyers were left around in the afternoon, possibly drunk on eggnog, and they were still interested in buying. Only the sellers were gone so their teased them back into the square by throwing snow balls at their windows.
Little did they know the world was ending today, and they would wake a giant laser beam armed algo who would melt all the snow and leave only a bottomless pit where the buyers once stood.
And here we are today, still alive after the attack. Take a look at where we’re set to open, around 1422, not as bad as it looks on the freaky overnight tape:
We’re set to open right around Monday’s value area high, an area we snapped through and never looked back. Well here we are, throwing back to the scene of the crime where this week’s breakout started. Chess mentioned in his special fiscal cliff video last night that even though it appears we could see extreme volatility today given the overnight action, the busy news headlines, and option expiration it’s quite possible to be a quiet day given the light holiday trading action.
A mild session favors the bulls going into next week, and if they can hold the key levels of support I’ve outlined in the above profile, I we can stay constructive on the market. Keep your head on the open.
Update: Futures took another cliff jump down to 1418 as soon as I published. Be prepared for anyting, including a flush. Key off of the support levels highlighted.