The S&P sold off again today and made it down to the 4-week Balance Low. The question now is do we see further downside continuation and enter the lower balance area bracketed by 1387 to 1418 or stay within the upper balance. Lets look at the Daily Chart -
The Daily chart above shows that we are 1-timeframing down for the last 3 sessions with price settling within a prior 4 day balance. Unless we get rejected from this balance area - the destination becomes the balance low of 1414.50. Lets look at the profiles -
The profiles from the last two days indicate long liquidation as opposed to a combination of liquidation (old business) and new money selling. Volume has been low. Coming into the pit session this morning, the market was short overnight and sold off further during the pit session. The poor low is an indication of a market that is too short. Value was clearly lower however, the naked prominent POC above and several anomalies in today's profile lower the odds of further downside continuation. Lets see what tomorrow brings however I am going to be cautious on playing the short side.
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