The intraday SPX activity on 1/3/20 revealed where the next support/resistance levels are and how the market operates. Trading View member The_Unwind has recently been using the Multi - Time Period Indicator which can be found on this site indicator section. This is an excellent tool to use because it has aspects of the Market Profile method and can be used to discover support/resistance. For the sake of clarity I've only illustrated the support and resistance levels. I strongly recommend all members to use this fantastic indicator.
On 1/3/19 the SPX opened below the prior box support, normally this would be a bearish signal and imply the remaining trading day trend could be down. However the SPX bottomed in the first minute of main session trading and within a few minutes quickly traded above the prior box support. This instant rejection of the opening low is a vivid example of large money traders that need the liquidity of the main session to conduct their business. They took advantage of the overnight selling to buy. Frequently the SPX will make its high or low of the day within the first few minutes of the main session open and sometimes in the first minute.
Note that after the opening move back up above prior box support that the line provided support - probably large money traders continuing to buy that level.
Watch the support/resistance levels of 3222.30 and 3257.50 on 1/6/19. A move above 3257.50 could be brief, the SPX - daily and hourly RSI have bearish divergences.
There's short-term Fibonacci resistance at 3261 to 3262.
A move below 3222.30 could be bearish assuming its not rejected within the first few minutes of main session trading.
Mark
On 1/3/19 the SPX opened below the prior box support, normally this would be a bearish signal and imply the remaining trading day trend could be down. However the SPX bottomed in the first minute of main session trading and within a few minutes quickly traded above the prior box support. This instant rejection of the opening low is a vivid example of large money traders that need the liquidity of the main session to conduct their business. They took advantage of the overnight selling to buy. Frequently the SPX will make its high or low of the day within the first few minutes of the main session open and sometimes in the first minute.
Note that after the opening move back up above prior box support that the line provided support - probably large money traders continuing to buy that level.
Watch the support/resistance levels of 3222.30 and 3257.50 on 1/6/19. A move above 3257.50 could be brief, the SPX - daily and hourly RSI have bearish divergences.
There's short-term Fibonacci resistance at 3261 to 3262.
A move below 3222.30 could be bearish assuming its not rejected within the first few minutes of main session trading.
Mark