For the sake of keeping things simple I’ve highlighted the two price zones that I consider significant in the short-term for the S&P future. The scene of the breakout yesterday is interesting. It’s the confluence of the prior two day’s value areas. The subtle cue that the balance may break to the upside was the slight uptick in the value area. Yesterday the breakout produced single prints. Single prints signal aggressive activity that resulted in a violent movement in price. How we treat this level for the remainder of the week can be very telling.
Above I’ve highlighted the level where I expect to see sellers enter the tape. If they can’t show up and defend these levels, it’s pump time.
Today it’s all eyes on Facebook as expectations have been set high by wall street (why?) and they need to deliver. The GDP numbers are rattling the markets a bit, if the bulls actually hold on today they have serious sand.
