The indices caught a bid on the dip overnight and have us set to gap higher this morning. The buyers may need a head start if they are to claim a victory on the day. Thus far this week, the sellers have held solid control and are doing a confident job dictating market direction.
The sellers could even be seen shorting into weakness yesterday, an action that in recent history would result in vicious squeeze and capitulation type action.
I am still keying off of 3390 on the upside and 3360 below on the NASDAQ futures. We breached this low print yesterday during RTH, it became our overnight low, and it market the level where we launched higher last Tuesday. If buyers cannot sustain trade above this level it would suggest the sentiment that propelled the market to recent highs has changed, and is no longer impactful.
Do not have any graphics to present this morning. Watch for sellers to enter at some point this morning to close the overnight gap. If they no show, something may be afoot or they are waiting to see the auction behavior before stepping back in. Rest assured they have gained a bit of confidence this week which in a big part is due to their solid defense at 3390.
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I love this stuff. It calms me.
Me too. I’ve been watching that 3390 closely the whole day. We have been working around it all day but we just crushed it for good.
Me too, that 3390 level has seen quite curious reactions. I’m glad you guys see value in this work.