S&P Futures Update for Aug 15, 2012

All Trends - Monthly, Weekly and Daily - are still UP. The S&Ps gapped higher this morning and were met by resting Sellers. It is not uncommon to find a breakout challenged during the Pit Session hours. While the market exhibited weakness - closed the Gap and settled back within the 5 day Balance  - Value was clearly higher all day and Price was never really accepted back in Monday's range.  Another observation - It would be unusual for the market to make a monthly high in the Overnight Session. The overnight high was 1309.50. However, not taking out the O/N high in early pit session trading is also a sign of weakness. 

Our best reference for Wed morning is the Spike - the top of the Spike - 1402 area is resistance. Opening and trading within the Spike keeps us back in the previous 5-day Balance. Trading below the Spike targets the 5 day Balance Low at 1392. Opening and trading above the Spike keeps the trend intact and targets the prominent POC at 1404.

S&P Futures Update for Aug 14, 2012

Not much to add since yesterday. We continue to stay in Balance 1392 to 1403. Shown above is a merged Profile for the last 5-day Balance. Notice the small/narrow Value Area. We have closed on the highs for the last 2 days - Value was overlapping to higher today - clearly the market wants to go higher. The longer we stay in balance the more dynamic the breakout  - Be prepared to "go with" a breakout from the 5-day Balance.

S&P Futures Update for Aug 13, 2012

No Change in the Weekly and Monthly Trend - the trend is UP. As of Friday, The S&Ps have come into a 4-day balance. Notice the trade location - we are within 8 handles of the April Highs i.e the 1411 area. From this 4-day balance the S&P's may revert to the original trend which is UP or begin a new trend in the opposite direction i.e down.The caution is that this entire rally has been on positive news from Centrals Bankers around the world that they will do anything to preserve the markets/economies from falling apart.

Friday's late afternoon Spike is our best reference for Monday. The Trading question is whether we Open in or out of Balance relative to the Spike.  The bottom of the Spike - 1399 is Support. Opening and trading above the spike reveals a breakout from balance.