Sunday, January 6, 2013

S&P Futures Update for Jan 7, 2013

Perspective: After breaking below a 2 month Balance (Sept & Oct) - see shaded area in chart below, the S&P's re-entered the prior Balance in November and as of Friday not only reached the opposite end (destination) of the 2 month Balance but explored just above the 2012 highs and settled back within the prior Balance. However, it is too early to tell if we have a potential Excess High at 1463.

 

The Daily Bar below shows that we are still 1-timeframing UP - the first sign of confirmation of an Excess High will be a correction that stops the 1-timeframing and probes the large GAP below.

 

Lets look at the Profiles -

 

Opening below the late day Spike from Friday is short term negative. Taking out Friday's low with conviction confirms the Excess High and destination becomes the prominent POC and the poor low from Wednesday. I will be watching 1453 - as a key level. Failure to find acceptance above this level points to price auctioning lower.

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