S&P Morning Update for July 27, 2012

 

O/N Inventory is almost all Long. The immediate references to the downside are y'day High at 1358.75, below that 1357 - previous resistance - now support; and y'day's Settle at 1354.75. Higher Value and price acceptance above 1355-57 targets the high from July 20 (see last night's blog post), a 2 tic gap at 1365.50 and above that the prominent POC at 1371. If we opened now - we would Gap up again - so Gap trading rules apply. If we enter y'day's range and begin to find acceptance - there is a strong likelihood of auctioning down to y'day's low. Y'day's Low was poor.