After the initial first half hour of chop Tuesday the market broke from Monday’s balance (after reaching the 1943.50 previous high on Monday), closing Friday’s gap below at 1916.
The S&P Futures continued the rally started Sunday evening, gapping higher Monday morning and climbing to the mechanical reference at 1943.50, the top of the 6 week balance area range.
Opening Monday 18 points higher than Friday’s close at 1914.25,
there are now three sizable gaps underneath the market. And while there is no excess on the 1804.00/1805.00 lows, the almost exact matching highs at 1943.25/.75 also offers poor structure.
Treating Monday as a balancing day, and depending on where the market opens Tuesday, does price look above/below the balance and accelerate or fail? The odds are probably low Tuesday will be another balancing day.