S&P Futures Update for Dec 7, 2012

The S&Ps continue to be range bound. Wednesday we looked below 1400 level and found responsive buyers. Both Wed's and Thurs high is poor and the POC is at the top end of the range. Thursday also had a poor low. However, two back to back poor highs usually take precedence have an exponential effect - so odds are they get taken out first. Overnight Inventory is Short to Balanced which may support a move to the upside assuming their is an inventory adjustment at the Open. It all depends on the Unemployment Report due out at 8:30 am EST. Acceptance above Wed/Thur high targets 1422-24 area.

S&P Futures Update for Dec 5, 2012

No Change in Weekly or Monthly Trend. The market continues to be range bound until the question on Fiscal Cliff is resolved.

 

Traders continue to get either too short to too long in the near term. Monday pit session saw the inventory get quite short - as POC did not migrate lower. Monday overnight was more short. Tuesday - while short term Traders tried to push the market lower below the 1400 level - they did not get much follow thru. Tuesday pit session saw inventory get somewhat balanced however Tuesday Overnight session clearly shows short covering. Based on Tuesday's Settle - most of the trade occurred above the Close in the overnight session - implying that inventory is long. Notice that the overnight high is the also the Monday pit session rally high - which becomes a key reference to start the day. Any change will occur either above 1413 or below 1400. Tuesday's POC is very prominent and has high odds of being revisited. Taking out Tuesday's low turns the short term trend back to the down side - takes us back into Wed's range that does need repair.

S&P Futures Update for Dec 4, 2012

As I had mentioned in Sunday night's post - the odds of upside continuation on Monday were low. Monday - price entered the prior 2-day balance (Thur/Fri of last week) and sold off down to the Balance Low. Monday delivered an Outside Day - which implies that price usually moves further in the direction of the Close. However, looking at Monday's profile - shows inventory that got too short in the Pit Session. Overnight session is further short. Unless we get below the 1400 level convincingly - we may see a short covering rally. If we do sell off and enter last Wed's range - I would watch the 1392-93 level as support.