The overnight session has been strong, pressing the S&P into the upper quadrant of yesterday’s action. We’re nearly 10 handles above yesterday’s close. We’re certainly seeing a market climate loaded with chop and large gapping action.
Yesterday’s auction was a battle for control as we auctioned inside the thinly traded zone from 1632 – 1617. The sellers came to the market early in the afternoon and leaned against Monday’s VAL as resistance. A clear victory for the bulls today would be building acceptance back above 1640.
Sellers want to press price below the value point of control set at 1625.50 yesterday. From there, a push down to 1614 becomes a distinct possibility.
I’ve highlighted this level and other key price zones below:
