S&P Futures Update for Aug 24, 2012

The S&Ps broke down below the Upper Balance area and delivered another Lower High / Lower Low - entering the lower 7-day Balance area. While the Monthly and Weekly Trend remains UP, the daily trend has turned down. Finding acceptance in the lower balance targets the balance low of 1390-92 area. If the destination is reached, the Weekly Trend would also turn down as last week's low was 1394.25. Lets look at the Profiles:

Yesterday's blog mentioned that the market may be too long as the POC did not rise as price was auctioning higher. We came in this morning with Overnight Inventory being mostly long. The sell off experienced in the Pit session balanced the long inventory, however, today's profile now suggests that market may gone from being too long to too short as the POC did not move down commensurate with the price decline - see the 45 degree line show above. Today's profile also left several anomalies that are usually revisited in the following session or two. Value was clearly lower.

We have a naked POC below at 1397 and last week's low at 1394.25. These are the key references to the downside. 1403 was the Rally High made in P period - first sign of change will be finding acceptance above this level.

S&P Futures Update for Aug 23, 2012

The S&Ps made a lower High and Lower Low but closed right back within the Upper Balance Area and essentially unchanged from y'day's Close. The weekly bar continues to show an Up Trend. As mentioned in last night's blog post, if there is to be downward continuation, we will see price acceptance below the 1407-08 level and lower value. We did get lower Value today. On the upside, unless we see price accepted back above 1416.75 level, the short term trend may have turned down.

Following the FOMC announcement, the S&P's experienced a short covering rally that may have left the market too long - notice the POC did not rise as the market was rallying. The profile also shows several anomalies, lower Value and a poor Low. Odds are that we see these repaired/corrected in the next day or so. For tomorrow - I will be looking at whether we open in or out of balance relative to Wed's range. The key reference above is 1416.75 and reference below is 1407.