We’re heading into some turbulence this week, with the S&P futures gapping down over ten handles. The overnight session saw price over 20 handles lower before buyers stepped in and stabilized price. Since around 2:30am (near the European open) we have seen the price of the index rebound 10 handles.
My profile is looking haggard because the contract data did not roll properly from March, so it may be a few sessions before it’s all cleaned up. However, I do see 1544.75 as a key level for bulls to recapture if they intend to assert control of the tape. Otherwise, I expect to see consolidation type trading where we recheck some past levels for significance (see if they become support).
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