Wednesday, February 20, 2013

S&P Futures Update for Feb 21, 2013

What we saw post the FOMC minutes was pure liquidation. What is significant is that we have stopped 1-timeframing Up on a Weekly basis. This could morph into an intermediate term trend. However, keep in mind that the Rally High of 1530 made in the Globex session was not visited prior to the sell off. It would be unusual for a lasting high to be made in the Globex session.

Looking at the Daily RTH bar chart above - it shows that price has entered a lower 10 day Balance. Building lower Value and price acceptance within this Balance targets the 1500 level and below that the 1490 area. The profile below shows elongation and multiple distributions. However, the POC did not migrate lower with price. The Spike is our best reference for tomorrow.
  1. Opening within the spike shows price acceptance and keeps the break intact;
  2. Opening and trading below the spike reveals that price has not auctioned (probed) low enough to cut off the selling allowing for two-sided trade. The auction is not over.
  3. The top of the spike is “resistance".

No comments:

Post a Comment