S&P Futures Update for Jan 22, 2013

The S&Ps continue to 1-timeframe higher on both a weekly and monthly basis. The all time highs made in Oct 2007 are within reach.  Let's go directly to the Daily Bar - 



Looking at the daily bars suggest that the trend is aging - the first clue is usually overlapping balance areas. Short term traders continue to push the market higher leaving poor structure behind. My focus for Tuesday is on the 2-Balance and whether the upside breakout level at 1469 will hold.  Lets look at the Profiles next:



 Fridays profile reveals several anomalies. Anomalies represent forcing action and are often revisited the following day. We also have a late day Spike - opening within the spike or higher is positive. Opening below the Spike is negative and targets Friday's low and the Gap. However, the two back to back poor lows and the prominent POC below lower the odds of upside continuation. Odds are that we test the breakout level again to see if buyers are still in control.

S&P Futures Update for Jan 16, 2013

 

Looking at the Regular Trading Session Daily Bar I see two overlapping Balance Areas. While the S&Ps made a new pit session high, we still have 3 electronic (Globex) highs that have not been tested. It would be very unusual for the market to make an all time rally high in the Globex session.



Coming into the Tuesday pit session, Overnight inventory was short - the market spent most of the day 1-timeframing up except for a pull back in L period at 1462. Following the pullback, the S&Ps repaired the 3 poor highs from last Thursday, Friday and Monday. The 45 degree line suggests that short-term inventory was long at the Close. I am viewing the last 4 days as a Balance Area. The likely scenarios are:

1. Remain within Balance.
2. Look above (or below) and fail.
3. Look above (or below) and accelerate.