http://youtu.be/qZCSGwKOntY?t=30s
Good Morning traders, we’re coming into the week hot again. The Europeans put at bid in the S&P overnight and have seen the contract seven handles higher. Price has lost momentum near 1524 which is the major confluence noted on my chart today. It marks the edges of two significant value areas from last week (Tuesday & Wednesday). How the market behaves at this level early this week will give you a significant feel for the sentiment surrounding last week’s distribution day lower.
Trade was rather gappy [sic] last week, but considering the first distribution day occurred, followed by a gap lower, the fact that the bulls horned their way higher into the weekend gives you a sense of the demand existent in equities. However, Friday’s profile was poorly formed. It has a toothy shape, and shows evidence of the low volume. That is why I’m marking the value area high as an ideally sustained level. The weak auction is susceptible to re-auction.
And of course I’ve highlighted the pump line, and my out of the way “trip exposure” line should we be greeted by aggressive selling. Stay open minded.
