The sellers brought the force yesterday and overnight.
S&P futures continued lower after the cash close yesterday rotating as low as 1612.75 before stabilizing. Around 4am the sell orders began flowing into the markets again pressing the globex session to new lows at 1605.50. Since then we’ve stabilized again as we approach RTH.
The current size of the gap (over 10 handles) is often referred to as a pro gap, and often goes unfilled. However, given the overall choppy conditions of the market, I suspect a slightly higher probability exists than the typical low 40 percent odds.
Most important today however, is defining levels of potential support. I won’t be performing any knife catching feats in the futures today, but it’s important to keep these reference points in mind while gauging the sentiment of the market.
I expect some attempt early on by the buyers to press higher. Here’s the levels I’ll be keying off of in today’s trade:
