Alongside news that President Trump halted relief talks with Democrats until after the election, markets fell apart, retesting the prior week balance and the VWAP anchored from the September highs. Since the cash close, markets have recovered substantially off their overnight lows alongside comments Trump could send $1,200 checks to Americans. The action has been constructive and we're now sitting right on top of a major high-volume concentration that denotes recent value and should allow responsive sellers favorable entry if there has been an actual change in conviction.
Auctioning through the high-volume area and recovering the SOC (Scene Of The Crime) would increase the odds we test the 61.8% retracement (i.e., $3,440).
Overall, remaining above the $3,370 high-volume area is bullish. Below $3,370 is bearish. This will likely be a go, no-go level in today's trade.
Note: Prior to the sell-off, the market was showing signs of a balance-area break-out, piercing through the "Ledge". The fact that it was building value north of the ledge gave initiative longs confidence to discover higher.
Given that the news event brought us back into range, there's potential that the responsive participants auction price lower to the other end of balance, near the $3,320 area (i.e., a boundary of the low-volume area which denotes upside directional conviction). Defense of the low-volume area is paramount. Should price probe into and auction through the area, then a likely target would be the recent $3,198 swing low.
Auctioning through the high-volume area and recovering the SOC (Scene Of The Crime) would increase the odds we test the 61.8% retracement (i.e., $3,440).
Overall, remaining above the $3,370 high-volume area is bullish. Below $3,370 is bearish. This will likely be a go, no-go level in today's trade.
Note: Prior to the sell-off, the market was showing signs of a balance-area break-out, piercing through the "Ledge". The fact that it was building value north of the ledge gave initiative longs confidence to discover higher.
Given that the news event brought us back into range, there's potential that the responsive participants auction price lower to the other end of balance, near the $3,320 area (i.e., a boundary of the low-volume area which denotes upside directional conviction). Defense of the low-volume area is paramount. Should price probe into and auction through the area, then a likely target would be the recent $3,198 swing low.
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