The overnight session featured a seven and a half handle chop which already sets the tone that the market is building energy. Up above, yesterday’s high of 1648.75 was tested twice and both times rejected. It now resembles a triple top. Any sustained trade above this level gets us moving fast. If we see price accepted above these levels only to fail, that would be a nasty bull trap.
Below the overnight chop is 1641 which aligns with yesterday’s value area low. Sustained trade below this level will quickly take us to yesterday’s low (and open) at 1634. If the lows don’t hold, the sellers will likely target 1627.25 then the sold foundations from 1622.75 – 1620.25 – 1618.25 – 1617. This cluster of support is vital to the long case in the short/intermediate term. Below there, price gets slippery down to a 1614 LVN then 1610.25 06/13 VPOC.
I’ve noted the above levels in the following chart:
Quality.
thanks Chess!