Price is flat on this third-to-last day in August after an overnight session featuring normal range and volume. Trade is balance and mostly contained in the lower half of Friday’s range. At 8:30am Personal Income/Spending/Consumption data came in slightly better than expected.
Also on the economic calendar today we have 3- and 6-month T-bills being auctioned off at 11:30am.
Last week was choppy. Tuesday saw new highs briefly before an abrupt fall through our entire balance area. Then Friday, on the low-end of value, we saw a strong bid step in. Choppy and balanced. The risk of a failed auction is still present.
Heading into today my primary expectation is for sellers to push up into the Jackson Hole reaction. Price pushes up to 4817.50 before two way trade ensues.
Hypo 2 sellers work down through overnight low 4774 and probe Friday’s weak low 4757.25. Look for buyers down at 4754.50 and two way trade to ensue.
Hypo 3 range play. Balanced trade between 4800 and 4770.
Levels:
Volume profiles, gaps, and measured moves:
