All Trends - Monthly, Weekly and Daily - are still UP. The S&Ps gapped higher this morning and were met by resting Sellers. It is not uncommon to find a breakout challenged during the Pit Session hours. While the market exhibited weakness - closed the Gap and settled back within the 5 day Balance - Value was clearly higher all day and Price was never really accepted back in Monday's range. Another observation - It would be unusual for the market to make a monthly high in the Overnight Session. The overnight high was 1309.50. However, not taking out the O/N high in early pit session trading is also a sign of weakness.
Our best reference for Wed morning is the Spike - the top of the Spike - 1402 area is resistance. Opening and trading within the Spike keeps us back in the previous 5-day Balance. Trading below the Spike targets the 5 day Balance Low at 1392. Opening and trading above the Spike keeps the trend intact and targets the prominent POC at 1404.
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