The S&P spent the overnight session first wrapping up unsettled business below yesterday’s close then taking a one directional move for over 10 handles higher. The move started around the opening of the European markets, and only just now offered a pullback for eager entrants. Thus far they’ve all snapped up the opportunity, driving price from 1587 – 1591 in a matter of minutes.
My greatest concern today is early weakness once the US cash market opens. If a dynamic move lower takes hold, it could press us through the large and important value zone buyers have diligently progressed through. However, the thrust that just occurred as I type accomplished the important matter of setting a higher high which gives bulls some momentum to work with.
The angle of ascent overnight is very steep and may be prone to sharp dip. Should that occur we need levels in mind to gauge the overall sentiment of market participants. I’ve highlighted some levels of support and resistance I’ll be using today to provide insight into the overall context of today’s price action in the following profile chart:
