Coming into today the key levels are very similar to Friday.
Support 1621.50-1623.25, defined by: ONL 1621.50, VAL 1622.00, MCLVN 1622.00, Weekly PP 1623.00, Daily S1 1623.25
Midpoint 1626-1627.75, ONH 1627.75, Daily PP 1626.75, VAH 1627.00 and the VPOC from the last few sessions at 1626
Resistance 1632.25-1633.50, Swing high and daily R1 pivot.
The market is opening in a gap down situation during an uptrend, that support level would be a discount level for the fill. The key is the VPOC from the past few sessions so it is very important to reduce risk as that level is approached. Additionally news release at 10am EST, keep that in mind during the morning session.
A failure at the swing high and intraday resistance should catch break out traders and late longs flat footed. The KEY area off that zone would be Friday’s HOD at 1630.50. In the event a failure does occur, that is the first place that will be defended. Otherwise the next logical step is to find balance at the midpoint zone.
Should be a great day, good luck out there.
