The overnight S&P market featured a bit of follow through strength early in the evening before balancing out near the highs of yesterday. Yesterday was an interesting kind of trend day. It earns the title of trend day since it never made a new low during any TPO period. The trend day featured a bit more overlap than your standard trend day, and the day also started with a normal auction as opposed to a strong opening drive. Overall this type of day suggests buyers gained conviction after watching the first hour and a half of trade and subsequently drove prices higher for the remainder of the session.
The balanced overnight market is currently exploring the low-end of current value which may lead to responsive buying early on. An early test of the 1700 range (1700.50 – 1699) would provide an early puzzle piece to today’s auction. There is a low volume pocket below these prices spanning all the way down to 1696. A lack of responsive buying at the 1700 range could lead to a swift trade to the 1696 level.
Some digestion of the recent bull progress may be in store today, but overall control of momentum is back in the buyer’s hands. The control comes into question below 1684.
I have highlighted these price levels and a few scenarios on the following market profile charts:
just printed an HnS on the /NQ, may see some selling this afternoon