The market continues to trade within a tight 4 week Balance range of 1394.25 - 1416.75. A breakout to the downside targets 1387.25 while a breakout to the upside targets the recent highs at 1424.75.
The market was short overnight and got further short during the day timeframe as short term traders were unable to take out 1394.25 - which is a 4-week balance low. The afternoon session saw a sharp short covering rally that delivered a double distribution day. Treat each distribution as a separate day. Opening within the Upper Distribution is positive and targets the 4-week Balance high of 1416.75 - which is also a poor high. The first sign of change will be trading below 1402 - which was the late afternoon pullback low and short term support. The caution for traders holding long positions is that POC did not rise as price auctioned higher in the afternoon.
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