We’re starting the week in my favorite area to do business, the dip zone. More specifically, we’re above my favorite EMAs after making a new swing high.
I’m looking to buy strength today, should the market remain constructive. As of 8am, the S&P futures are priced to open slightly higher, near Friday’s value area high. Critical support for a constructive session is the confluence of interesting profile action at Friday’s lows. We don’t want to see trade sustained below these levels as longs because it’s likely to preclude another flush lower.
Overhead resistance at Thursday’s volume price of control at 1414.25 and above there it could be a quick ride to last Wednesday’s lows which share confluence with Thursday’s value area high. I expect we could see sellers at that level too. E-mini S&P profile below:
Also, the light sweet contract continues to be on slippery footing, after gapping higher on its Sunday evening open it has been smacked lower. The session has stabilized since the USA started coming online, but be on the watch for continued weakness which could bode well for Rhino’s refinery thesis and the airliners:Twitter