Welcome back, everyone.
I hope you all had a great session, as our levels once again performed at the highest level. We went into the week expecting a major pivot at the 6802 value area low. This, in fact, marked the low before a sharp move right back up to the 6889 target. From there, we saw balance; since this is where the majority of volume has traded, it is a magnetic level where price moved up and down but ultimately balanced out.
As we noted in yesterday's post, we called for 6889 to be a key level. We wanted to see a move up to this level, followed by a close and hold above it to signal continuation to the upside. On the flip side, for a bearish outlook, you want to see price fall back below the 6889 point of control to signal a move right back down to the value area low. At the time of this writing, the market has sold back down, giving back over half of yesterday's rally. While we can expect the market to remain supported above the 6802 value area low, we need to pay close attention to the fact that price has already bounced here and is selling right back down within the next day.
The levels for today’s session are very straightforward, as we laid out the complete volume structure for the S&P 500 in the weekly plan. Everything is going to plan right now. We know the levels required to stay bullish, and we know exactly where we want to be sellers if the market heads lower.
