What Happened: Alongside concerns over the resurgence of COVID-19, U.S. index futures extended lower, with the S&P 500 auctioning into a composite high-volume node, the market’s most recent perception of value.
What Does It Mean: During Monday’s regular trading in the S&P 500, initiative buyers failed to extend range; the session ended in prior balance and range with minimal excess denoting the non-presence of conviction.
Overnight, participants auctioned back below the $3,682.00 balance-area boundary, before responsive buying surfaced near the $3,667.75 high-volume node. Given that the S&P 500 is trading within last week’s balance area, the potential exists for a failed break.
What To Expect: In light of the re-entry into balance, 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, auctioning further below the $3,667.75 high-volume node 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.
Physik Invest 