What Happened: U.S. index futures were flat overnight after a trend-day lower from fresh new all-time highs.
What Does It Mean: During Wednesday’s regular trading, sellers extended range down to 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 the lower prices, holding near Wednesday’s low.
What To Expect: In light of yesterday’s selling, the following frameworks apply for today’s trade.
In the best case, responsive participants surface at the $3,667.75 high-volume node and buyers make an attempt to repair some of Wednesday’s poor structure.
In the worst case, if the S&P 500 auctions below $3,667.75, participants would look to whether the $3,640.00 balance-boundary and offers a response. If not, initiative buying has been exhausted — the chances of sustained upside directional resolve are diminished greatly.
Levels Of Interest: $3,667.75 high-volume node and $3,640.00 balance-boundary.