Not much has changed in the last 2 days. The market has made 2 attempts to fill the large Gap below and on both days found resting buyers and rallied into the Close. Looking at the 2-day composite profile above - we have a poor high and poor low - confidence remains low in either direction.
Overnite - price has traded into the Gap above, however inventory is net Short as it relates to yesterday's Close. A couple of scenarios that could play out:
- Closing the Gap at 1357 and finding buyers would take us into the 2-day balance (Tue/Thur) from last week. Target would be the 1370-75 area.
- Closing the Gap at 1357 and finding resting Sellers would take us back into the Fri/Mon balance and target the 1340 area.
- The market may Open at the top of Fri/Mon balance - and find Sellers - not fill the Gap above and continue to build Value within the last 2 day's range or trade back into the lower Gap.
Focus on where Value develops and whether we Open in or out of Balance relative to the prior 2-day range.
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