We have an overnight high (Globex) of 16.75. This is also a contact high. We will likely test this during RTH. If we take a peak above it and only find stops and no new initiative buyers by other time frame traders we will likely rotate back down to 09.25, the Value area high or 02.25 the value area low. I have an 8 MA of the daily Value area average at 1198.00. Trading below this area with conviction will set the tone for a new trend to the downside. Looking at the NYA I don’t see that in the cards but I know anything can happen and usually does when we least expect it.
The locals were gunning for stops around that 08- 09 area on Friday which pushed the market higher so I wouldn’t be at all surprised if see a nice bounce off that area in today’s session.
Tim Mack
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