Here is a mini composite profile from yesterday’s morning session.
a) Shows the market balancing off the big move from Friday
b) shows a small short covering which took the market to gap fill and day highs late in the afternoon.
c) Shows the morning session and early rejection of the drive from noon yesterday.The move down was however arrested at the POC from yesterday.
From the post of yesterday-
“So far this morning we have seen a reaction off the lows of 4565 to 4598 or about 33 points. Still not quite there for the buyers yet.
What I expect to see later is for buyers to step up and take the market to twice reaction target of 66 points. This will show me evidence that buyers are interested at current prices. Failure to do so will keep the swing down”
Broader view :
The buyers did show up and take the market to 4598 + 33 = 4631 which was what we expected for the noon session yesterday.The high of the day was 4633 incidentally.
The current activity above POC keeps the small up bias intact, but we need a decisive move out of value and range for the upmove to now continue. This would mean an auction back up above 4633.
At 4561 we saw a failed auction yesterday. Should the market succeed in taking that low out, all bets on the long side will be out.
