It looks like a lot of the excitement heading into yesterday’s session has started to die down. The technical levels are relatively clear heading into today. Two notes about them. A lot of resistance has been built up prior to primary resistance, notably around the Volume point of control from yesterday. The main support level today is dealing with down momentum from the overnight session and in a larger than usual gap situation. Indicating that the smart move would be to lock in profits prior to the full gap fill.
Primary support: 1638.25-1640.00
Primary resistance: 1650.00-1652.00
Here is the chart:
There are a lot of key areas in the auction above the primary resistance zone and above yesterday’s high. If resistance fails, my expectation would be a deeper test into wednesday’s range and ultimately to 1677.25, but I fully expect it to be a bumpy ride. Keep in mind the context of what it means for sellers if we breach the high and begin pushing up into the range. Sellers should look for the exits on any pull backs and buyers will be stepping on the gas. Essentially what I am saying is, at that point, don’t get drawn into shorting without having the larger picture in the forefront of your mind.
Good luck out there today!
