What Happened: Alongside news Pfizer Inc (NYSE: PFE) would apply for emergency authorization within days, U.S. index futures auctioned to the high end of this week’s range, suggesting further balance and acceptance of higher prices.
What Does It Mean: As of now, the S&P 500 index future is trading near $3,620, the high-end of the weekly range that’s been dominated by short-term money. This is evidenced by the weak, mechanical highs and lows over the past two days.
Given the non-presence of higher-time frame participation, there is little directional conviction going into Wednesday’s regular trading session.
Further, after rejecting the low-volume area beneath $3,600, the S&P 500 remains in balance; as a result, if participants manage to spend time and build value outside of the balance area between $3,585 and $3,630, then odds favor range expansion. Otherwise, the market will remain in balance, favoring short-term, responsive trade.
Levels Of Interest: 100% projection of the balance-area at $3,650, $3,630 balance-area high, $3,585 balance-area low.