Tip top of the morning, memorial weekend procrastinators!
The pre market has turned from moot to rather weak over the last hour, with sell flow pushing into the tape. We’re currently trading at the value area low of our 24 hour profile which is also a high volume node at 1639.50. We could see a bounce here, especially given the one direction nature of this most recent move.
Oddly enough, our profile yesterday took on the shape of a letter P which, in many cases, suggests we spent the session squeezing shorts. That’s relatively uncharacteristic of a large gap down, but I know many long traders who were green come market close yesterday, so it makes sense.
The question now becomes, was yesterday a temporary phenomenon to the upside? The attempt at filling the gap was impressive, so I give the buyers a pat on the back, but we are dealing with a heavy amount of sell flow in the globex hours. It will be interesting to see how RTH handles this weakness today.
I’m keeping with the zoomed back profile to give us reference points to trade.
