Early Expectations and Clues

I’ve awoke to a lovely snow of the arctic variety.  I trade best in these situations.

A strong overnight session has pushed the S&P futures nearly ten handles higher and is currently making new highs as we enter Friday’s cash session.  We’re slated to open around 1510.  Yesterday I highlighted what I see to be a poorly auctioned area spanning from 1512-1504.  Early on I’m looking for reactive selling to drive price lower, targeting Wednesday’s low at 1506.25.  Then I’m looking for buyers to reenter and balance trade, giving us an auction in this zone for the remainder of the day.

If we should see buying at the open, a breach of 1511.50 could give us a quick ramp back to 1517.75.  The thin profile above suggests aggressive behavior by the sellers.  Should we not see a sharp rejection of these prices, but instead acceptance with volume, price can quickly revert to the value above.

Simple and sweet, let’s close this week out well.