Market Commentary For 12/9/2020

Daily commentary for U.S. broad market indices.

What Happened: U.S. index futures rose higher overnight, bolstered by stimulus and vaccine news. The S&P 500 is now coming off a fresh new all-time high at the site of multiple price projections.

What Does It Mean: During Tuesday’s regular trading in the S&P 500, initiative buyers extended range after a test of the micro-composite high-volume node near $3,667.75, a price level where participants spent a large amount of time in the past. The session ended outside of prior balance and range with poor profile structure denoting the presence of directional conviction.

Overnight, participants accepted higher prices, holding Tuesday’s all-time, day-session rally-high.

What To Expect: In light of yesterday’s price exploration, the following frameworks apply for today’s trade.

In the best case, if participants manage to further spend time and build value above the $3,690.75 high-volume node, then initiative buyers remain in control — the nearest upside level of interest is the high-volume node near $3,710.00 and price extension at $3,720.50.

In the worst case, auctioning below the $3,690.75 high-volume node would denote a change in conviction. As a result participants would then look to whether the $3,682.00 balance boundary offers any response. Breaking that figure denotes a rotational market — one that needs to digest this recent leg up.

Levels Of Interest:  $3,690.75 and $3,710.00 high-volume nodes, $3,720.00 price extension.

Bonus: Here is a look at some of the opportunities unfolding.

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