Friday’s short-covering rally left a trail of single prints – indicating a lot of emotional trading. The overnight activity is within the value area, which tells us there was no price exploration in the overnight session. Today’s activity will tell us a lot about future direction as we see if any longer-term buyers are spurred to action. The trend is still down until the Navigator Algo line triggers a buy, breaking the downtrend line.
The higher odds trades will probably develop later rather than earlier in this session. Watch the ends of the single prints at 4338 and 4329.75 as potential inflection points for trades. They often act as support or resistance. Assume a more bullish stance should price hold in the upper distribution (above 4338) and more bearish should they hold in the lower (below 4329.75).
A.F. Thornton