After Friday’s end of month options expiration short covering day, Monday’s trade was on low confidence, a migrating lower POC, low NYSE volume at 3.6 billion and was an inside day, leaving a poor low. Monday repaired 6 of the anomalies left from Friday.
Depending on Tuesday’s opening, trade ideas could include looking above or below Monday’s balance and either accelerate higher/lower, or look above or below and fail and return back into to balance, targeting the other side of the range. A lower odds scenario would see Tuesday be another balancing day but anything is possible ahead of Wednesday’s 2 pm FOMC Fed meeting minutes.
If there is an opening gap on Tuesday monitor the developing value area to monitor price acceptance or rejection in relation to Monday.