What Happened: After posting all-time closing highs, stock index futures are divergent and trading in-range, suggesting non-conviction.
What Does It Mean: During weekend trade, participants tested lower, into the $3,600 high-volume area on the S&P 500’s macro-composite profile, before responsive buying brought the index back into range.
Given the overnight recovery thus far, participants ought to monitor for a response at the $3,631 micro-composite high-volume node. An initiative drive higher, through this figure, may see a complete retracement of the overnight range, up to the $3,640 ledge. Breaking the ledge increases the likelihood of continuation up to the $3,655 and $3,668.75 rally highs.
Otherwise, the rally remains on hold as long as the index remains below the $3,631 high-volume node (e.g., a go/no-go pivot point).
Levels Of Interest: $3,631 high-volume node.