S&P Futures Update for July 27, 2012

No real change from a Weekly perspective - we are trading within a 4-week Balance. The message from balanced markets is that more information is needed before the market begins its next directional auction. Notice that the Weekly Close for the last 4 weeks are almost the same. Also, as of today July would Close unchanged from June - we are almost centered within the Balance range. Short-term trends, very often, begin from the center of a larger trading range. These trends can also evolve into intermediate-term trends.

  

The S&P's rallied on news from Europe where the ECB promised they would do everything possible to preserve the Euro. This caught many shorts offside and the market gapped up rallied for most of the day. Volume was above average. For upside continuation - I will look for higher value and price acceptance above 1357.

 

Today's profile was fairly balanced. Information that I am carrying forward is:

- Poor High from 7/20 at 1365.50 and

- A very Prominent POC  at 1371.00 from 7/19.

Price acceptance above 1357 and Higher Value targets the two references above. Failure to find acceptance above 1357 and develop higher Value area targets the 7-point Gap below.