What Happened: Alongside news of heightened geopolitical tensions, U.S. index futures liquidated overnight, stopping short of an important high-volume node, the market’s most recent perception of value.
What Does It Mean: During Friday’s regular trading in the S&P 500, initiative buyers extended range — through the $3,682.00 balance-area high — up to the $3,700.00 high gamma strike.
In overnight trade since, participants took back the entire breakout, auctioning back below the $3,682.00 balance-area boundary, before responsive buying surfaced above the $3,667.75 high-volume node. Given that the S&P 500 is trading within prior range and value, opportunity has been dramatically reduced.
What To Expect: In light of the weekend selling, the following frameworks will apply for today’s trade.
In the best case, if participants manage to further spend time and build value above the $3,682.00 balance boundary, then initiative buyers remain in control — the nearest upside level of interest is the projection near $3,710.00.
In the worst case, an initiative drive back below $3,682.00 would portend a response at the $3,667.75 high-volume node. Auctioning even lower would denote a clear change in conviction. As a result participants would look to whether the $3,640.00 balance boundary holds. Breaking that reference puts the rally on hold.
Levels Of Interest: $3,682.00 balance-area boundary.