S&P Morning Update for July 18, 2012

Overnite saw no further continuation to the upside. O/N Inventory is Short. Trading below the O/N Low 1351-52 area puts us into the Lower Distribution - which is negative. If there is to be upside continuation - Value should be higher and Price should find acceptance above 1360 level. If we Open now - we would open in Balance - which calls for a rotational day i.e. opportunities will be limited.

We have the the Beige Book news scheduled for this afternoon with second day of Fed Chairman testimony starting at 10 am EST.

S&P Futures Update for July 18, 2012

No Change from a Weekly Bar  perspective - trending higher - next upside references are 1375 - high made in the Globex session and 1369.50 - Pit Session High. Following the early session break which adjusted the overnite Long inventory - the S&Ps rallied to close on the highs - capping an Outside Day. Following an Outside Day - expected behavior next day is further continuation in the direction of the Close. 

Looking at the Profiles - we had 3 distributions - treat each distribution as a separate day - trading question for tomorrow is - do we Open in or out of balance relative to Dist 1? Building higher Value and finding acceptance above Dist 1 takes us into the 2 day balance above - destination becomes 1369.50. Short term support is 1353 area.