Monday saw some late day profit taking coupled with a sell off in Apple and Google shares. Value was unchanged and the POC did not migrate lower which suggests that the market may be too short. Unless there is price acceptance below 1424.75 there is no real change in trend. The Spike is the main reference for Tuesday.
- A price opening above the Spike would be considered positive since the price probe or spike was rejected leaving a buying tail or Excess. If this does happen - the next upside reference is Friday's low - 1432 area; above that is Monday's POC at 1435.25.
- Opening within a Spike shows price acceptance and keeps the liquidation in tact;
- Opening and trading below the Spike reveals that price has not auctioned (probed) low enough to cut off the selling allowing for two-sided trade. The downside auction is not over.
- The top of the Spike - 1432.50 - is resistance.
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