Europe is back in focus. After the sell-off Friday, the S&Ps gapped 18.5 handles lower today. The 1332 area found resting buyers and the market spent the rest of the day short covering into the Close. An 8.50 handle gap remains. For the short term trend to continue I will look for lower value and price acceptance below the 1328-1330 level which then targets the 1320 area.
Monday's structure was poor. We have several anomaly's in the profile that are often revisited the following day or two. We also have a poor high and poor low. Also notice that the POC did not rise with price as the market rallied from the lows. Some information that I am carrying forward from my blog post last night:
- from Thursday (7/19) - very prominent POC at 1371.25
- from Friday (7/20) - poor highs at 1365.50 and a prominent POC at 1359
Possible Scenarios for tomorrow:
- opening and building value above 1341.75 (pullback Low) targets the Gap above.
- rotate within Monday's range
- trading below 1328-1330 and building lower to overlapping lower value targets the 1320 area
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