Yesterday’s last half hour sell off, triggered Low Range Close and Low Continuation Signals for the Dow and the $BKX banking index and the S&P 500 cash index $SPX today. But throughout the Globex session, there has been nothing but buyers. The S&P, Dow and Nasdaq futures all registered NR4 trading days, meaning yesterday’s price action was the narrowest trading day in the last four sessions. Actually the Nasdaq futures registered an NR7 day, which was the narrowest trading day in the last seven sessions. Normally trading above yesterday’s high or low would indicate that the trend should follow for the balance of the day in the direction of the breakout.
Today’s daily pivot is 937.50 on the S&P futures. Continued price action above the pivot is bullish. The ability to generate an hourly close above 973 argues for a continued advance to 985 and 1003. Critical support is at 907. An hourly close beneath 892 will argue for new lows. Can’t get much more mixed signals than that.