Well, it’s really more of a chop low, set last week and rejected over the weekend only to find us properly testing it this morning. How the market navigates this big, balanced distribution will be very important.
Overnight the S&P made its way lower without much resistance from the buyers. We’re currently 15 handles off the high and seeing some very weak conditions. The action has taken us back down to our Wednesday/Thursday distribution and rotated most of the way through it.
Whether the market can pause in the range I’m about to highlight or price cuts right through will be my cue in positioning.