S&P Futures Update for July 3, 2012

Monday Open was at the Top of Friday's Spike - the market looked above Friday's high and found Sellers. Coupled with poor ISM data the market sold off for the first 4 periods before finding buyers 1-tic above Friday's POC. Despite the early sell-off Value was overlapping to higher. The market closed essentially unchanged from Friday's Settle. Given the holiday week - volume was very light and will continue to be thin tomorrow.

View Friday and Monday as a 2-day balance and apply the rules for trading Balance. We have a poor low - shown in the profile above and the 18.5 handle Gap below us. We have resistance at 1364-1365 area above us and 1342-43 area should offer short term support.

With Employment Data due out Friday, larger fund managers are most likely to stay on the sidelines. Markets close early tomorrow - 12:15 CST.

S&P Morning Update for July 2, 2012

Overnite Inventory is Balanced and the overnite low is contained within the Spike.  The base of the Spike at 1353.25 and the Value Area High from Friday is your immediate downside reference and support. The immediate upside reference is the next weekly high at 1363.75. Price acceptance and building Value within the Spike is positive; while Price acceptance and building Value below the Spike will be negative. An ideal Long will be a failed auction below the overnite low and/or the base of the Spike.