What Happened: On stretched sentiment, U.S. index futures extended their gains on news that a vaccine developed by Moderna Inc (NASDAQ: MRNA) was 94.5% effective at preventing cases of the COVID-19 coronavirus. The response resulted in a confirmation of Friday’s upside balance-break.
What Does It Mean: As of now, the market remains initiative above the $3,580 balance-area high.
Further, the successful negation of last Monday’s end-of-day spike points the confirmation of a higher time frame breakout, and keeps initiative buyers in control. Trade back to last week’s balance-area, and below the $3,506.25 excess low, would question the success of this higher time frame breakout.
Moreover, given the large overnight range expansion and the likelihood of a gap open outside of prior-range and -value, there’s the potential for responsive selling and balance.
As a result, participants should monitor whether initiative participants can overcome the responsive selling. If successful, then participants should place trades in the direction of new activity.
Levels Of Interest: 100% projection of the balance-area at $3,650, the $3,580 balance-area high, the high-volume areas at $3,600, $3,540, and $3,500, as well as the low-volume areas at $3,520, $3,575, and $3,608.