As we approach month end and work through earnings we’re seeing our first bit of weakness since the v-shape recovery off recent lows. The move has been more selective as ChessNwine has been reiterating, but for the indices it has been a unidirectional move.
The weakness spilled into the overnight session when European markets opened up. We pressed through yesterday’s low and price was driven lower by sell flow bringing us to prices as low as 1671.75. This price level has multiple confluence on the market profiles and should be monitored in relation to the other highlighted levels in the below chart to gauge the conviction of the sellers.
For the morning session, I’ll be closely watching yesterday’s low at 1677.25 and how the market treats it. After breaching the level around 3am, we’ve clawed our way back up to it. It will be interesting to see if sellers enter the market early and aggressive like we saw yesterday, or if something different occurs.
I’ve highlighted the aforementioned price levels and a few others in the following market profile charts:
