S&P Morning Update for Aug 7, 2012

O/N Inventory is Long. If we open now we will open back in the Upper Distribution from y'day - a clear rejection of the late afternoon downward Spike. On the downside the 1391-92 area should offer some support and below that 1387 - O/N low. On the upside the 1400-1401 area should act as resistance. If we take out the 1400 area with conviction, your next reference to the upside is 1405.25 - the May 1, 2012 high. My focus will be on Value - do we develop higher to overlapping higher Value? There is still no excess at the recent Highs.

S&P Futures Update for Aug 7, 2012

The S&P's continued higher today on low Volume. Value was clearly higher but the rally fizzled late afternoon and the market settled between two prominent POC's. Monday's high is Poor. I am going to treat the lower distribution from today as a Spike and employ the Spike Trading rules - do we Open in or out of Balance relative to the Spike? Opening above the Spike is positive and targets Monday's POC, the poor high and above that the March 2012 highs at 1401.25. Opening below the Spike is negative and targets the prominent POC at 1387-88 area and below that the pullback low from Friday at 1384.50. There is no Excess at the highs thus far.

S&P Morning Update for Aug 6, 2012

As mentioned in last night's Blog - the trend is up. O/N Inventory is Long. Unless we get price acceptance below 1384.50 which is Friday afternoon's pullback Low and Mid point, Value should be higher and the target becomes the 1400 level. Friday's POC was prominent and has a good odds of be visited. However, if we Gap Open higher - trade in the direction of the Gap if it is not filled within the first 30 minute period. No Major news this morning.