It is not necessarily that today’s news headlines are any more important than what we saw last month or any other day or week for that matter. Instead what makes today important from a trading point of view is the aging balance zone which has developed in the intermediate term.
Long term, we have a market in the solid control of buyers.
Intermediate term, we lack control. Since about November 26th, the market has balanced and chopped with no clear victor in place. I have illustrated this intermediate term balance today using the NASDAQ composite futures and the developed Gaussian curve spanning several weeks. See below:
On the short term, I give sellers the slight edge for liquidating the market on 12/11 and since then only allowing the market to coil.
Yesterday we printed a neutral print, which signals indecision and tends to occur near inflection points. This is balancing.
Overnight we bounced back from the late afternoon fade and have chopped along. More balancing/indecision.
Thus I conclude we are in a balancing environment. Therefore we must be aware of when the market is moving out of balance, and who is asserting control. As you can see on the above chart, there is a hinge of overhead supply the market needs to negotiate. The low end of our intermediate-term distribution shows a buyers’ tail.
Drilling into the daily market profiles, I list the key levels to monitor as we move about today. I am especially keen on 3452.50 – 3450 below. If we do not see buyers at this level, the downside could accelerate.
BIG VAL 3455 just held like a champ, big boys pushing us around in this sloshy balance, day timeframe in control
Still like LO?
oh god yeah, will add soon