1654

Buyers push.  Sellers pull.

1654 a battleground

From it, our bias formed

The first level catching my eye this morning is 1654.  Back in July, we rallied up to this point, found quite a bit of selling force before eventually the force of buy flow became too great and sent us spiraling higher to all-time highs.  The price level wouldn’t be visited again until late last week, where buyers worked adamantly to convert the prior resistance into support.

Since losing the level, we’ve tested it several times, and it’s been an environment where sellers are absorbing buy flow and reacting aggressively.  Overnight, we’ve churned around this level, but oddly enough, the price level marks a low volume node on the profile.  Price continues to behave like two magnates with the same polarity at 1654, flinging price away.  Something is afoot at 1654.

Into Friday’s tape, I’ll be keen on my observance of 1654 to see who establishes trade relative to the level.  As we approach the 7am hour, we’re pricing just below the level and the buyer’s momentum has stalled out a bit.  It wouldn’t surprise me to see sellers making the first move today.  However, control of the afternoon will be paramount going into the weekend, and they know that, which may keep sellers quiet early on.

The overnight profile marked a poor high at 1658, a point shy of my upside target for the latest move.  Any trade above 1660 would mark quality progress for the bulls.  Sellers will want to pin us deep into Wednesday’s value area, pressing south of 1644, the opening print yesterday.

I’ve highlighted these levels of interest and also mapped out a few scenarios on the following market profile charts: