Tuesday, October 16, 2012

S&P Futures Update for Oct 16, 2012



After 1-timeframing down for 6 sessions - the market came into balance yesterday. What we saw was short covering as a result of inventory imbalance. I am treating the last 4 days as a Balance area. 

 

My early reference for this morning is the late day Spike and poor High. Overnight trade has exceeded the Spike - suggesting that price is not done auctioning up. If we open now - we will gap up and be out of balance to the upside. If the gap holds - first upside destination is the single print at 1446.75. If the Gap is filled my first downside reference is 1434.25 and below that 1428.50.

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