The S&P's have been 1-time framing down for the last 6 sessions - short term trend is clearly down. I had also said in y'day's and this morning's blog that the market was too short. What occurred today was exactly what I had envisoned - closure of the Gap below - market found resting buyers - spent the rest of the day short covering. However, Value was clearly lower and we could not tag the prominent POC above at 1336.50 and the market settled below 1330 - low of the previous balance area - which is negative.
Next week is options expiration week. It is not uncommon for the market to make a low on the Thursday or Friday the week before options expiration and rally into the expiration week.
The market remains very short and while structure/volume underlying this recent decline is quite poor the market can continue lower towards the 1300 level. No change will occur until we stop 1-time framing down or the market comes into balance. Looking at the profiles near the balance area lows (June 25 and June 28) shows a couple of poor lows that need repair.
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