The S&P futures have been under significant selling pressure since opening Sunday evening, producing five significant rotations lower. The sellers are exerting their control on vertical development as the market continues to go down easier than up.
As I type, it appears the market is running stops on Friday dip buyers, pressing into their positions. I strongly suspect we’ll see stabilization take hold in this 1566.75 – 1564.50 region. If not, we could be in for much lower prices.
My profile data is being buggy this morning, so I’m only able to present you Thursday and Friday’s profile. We balanced out Friday afternoon, but only to the extent of printing a D-shaped profile. Although the resulting curve resembles a Gaussian bell-shape, it lacks the same significance. Mainly, it lacks any directional conviction, so we should respect the intermediate direction, which is corrective and lower.
I’ve highlighted some levels (resistance only) that I’ll be keying off of today:
