Happy Friday to you traders,
On Thursday, the SPX closed at 4134.98 or -0.92% on moderately negative internals and a completely red sector profile. Everything was going well and this all started just after 1 PM here and you can see the spill in the one-minute chart below. There was no resolution to this headline problem yet. One practical thing to do here is to wait until we see how they are hedged early tomorrow. The overnight futures will be of some help, but the cash session will be much more important.
This kind of market upset interrupts a lot of concentration work put in for work in the day timeframe. Many will just watch it a while before acting. Others will assume that this was a knee jerk reaction by algos. Traders will be watching to see if we can get back above 4140 and stay over that in the cash session as everyone parses the meaning of the news and how we go overnight and tomorrow. Market internals were not heavily negative during the single and double print spill, so that is one thing to consider. All the points of control below are still relevant if we see any more weakness, and on the upper side of things, nothing much has changed and will not if we stay above weekly support. Assuming price over what has become the weekly point of contention at ES 4150, we have weekly resistance at ES 4172, 4181.50 and 4200. Have a look at the charts below. I have smushed this week's profiles together so you can get a different view of things. Hope you are having a good day.
