The Bottom Line:
- SPX cash market broke out of a 3-day balance on Monday, making new highs
- Tuesday’s trading range was within the 30-minute bar from 3:30 to 4:00 p.m. on Monday
- Value unchanged and prices couldn’t advertise below the overnight low or halfback level
- Single prints below the halfback level still need repair, indicating potential for further upside
- Similar situation in the NQs, with the overnight high and Monday’s high being identical
SPX Cash Market Breaks Out of 3-Day Balance, Sets New Highs
3-Day Balance Breakout Leads to New Highs
The SPX cash market broke out of a 3-day balance on Monday, setting new highs in the process. The profile and bar chart clearly illustrate this breakout, with the market establishing a balance for three consecutive days before making a decisive move to the upside.
Tuesday’s Trading Range Confined to Monday’s Late Session Bar
Interestingly, Tuesday’s entire trading session was confined within the range of a single 30-minute bar from Monday’s late session, specifically the bar from 3:30 p.m. to 4:00 p.m. This is significant because the breakout move didn’t start at 3:30 p.m. but rather around the 11:00 a.m. hour, accompanied by substantial excess.
Market Acceptance and Unfinished Business
The profile for Tuesday shows value unchanged, and prices were unable to advertise below the overnight low from the previous night or below the halfback level on the U contract at 55 2550 from June 17th. There are still single prints and structure below that level that require repair, indicating that the market is currently accepting these higher prices based on the amount of time spent at these levels. As long as this continues, the market is likely to keep advertising to the upside. The same scenario is playing out in the NQS, with the overnight high and Monday’s high being identical, suggesting that the auction is not over and there is unfinished business to attend to.
Tuesday’s Trading Range Confined Within Monday’s 30-Minute Bar
Tuesday’s Trading Range Confined Within Monday’s 30-Minute Bar
An interesting observation from Tuesday’s trading session was that the entire day’s range was confined within a single 30-minute bar from Monday’s late session, specifically the bar from 3:30 p.m. to 4:00 p.m. This is noteworthy because the breakout move that led to this confinement didn’t start at 3:30 p.m. but rather around the 11:00 a.m. hour, accompanied by significant excess.
Value Unchanged and Unrepaired Structure
The profile for Tuesday reveals that value remained unchanged, and prices were unable to advertise below the overnight low from the previous night or below the halfback level on the U contract at 55 2550 from June 17th. There are still single prints and structure below that level that require repair, suggesting that the market is currently accepting these higher prices based on the amount of time spent at these levels.
Market Acceptance and Upside Potential
As long as the market continues to spend more time at these higher levels, it is likely to keep advertising to the upside. The same scenario is unfolding in the NQS, with the overnight high and Monday’s high being identical, indicating that the auction is not over and there is unfinished business to attend to. This suggests that the market is not ready to stop its upward trajectory just yet.
Value Unchanged as Prices Hold Above Overnight Low and Halfback Level
Prices Hold Above Overnight Low and Halfback Level
The SPX cash market’s value remained unchanged on Tuesday, with prices holding above the overnight low from the previous night and the halfback level on the U contract at 55 2550 from June 17th. This is significant because there are still single prints and structure below that level that require repair, indicating that the market is currently accepting these higher prices based on the amount of time spent at these levels.
Market Acceptance Suggests Continued Upside Potential
The more time the market spends at these higher levels, the more likely it is to continue advertising to the upside. The same scenario is playing out in the NQS, with the overnight high and Monday’s high being identical, suggesting that the auction is not over and there is unfinished business to attend to.
Market Resilience Despite Unfinished Business
Despite the presence of unfinished business and the need for repair in the single prints below the halfback level, the market has demonstrated resilience by not advertising prices below these key levels. This suggests that the market is not ready to stop its upward trajectory, and participants should be prepared for potential continued upside movement in the near term.
Single Prints Below Halfback Level Signal Potential for Further Upside
Unrepaired Single Prints Below Halfback Level
The SPX cash market’s inability to advertise prices below the halfback level on the U contract at 55 2550 from June 17th is noteworthy. There are still single prints and structure below this level that require repair, suggesting that the market is currently accepting the higher prices based on the amount of time spent at these levels.
Market Resilience and Upside Potential
The market’s resilience in holding above the overnight low and the halfback level, despite the presence of unfinished business, indicates that it is not ready to stop its upward trajectory. As long as the market continues to spend more time at these higher levels, it is likely to keep advertising to the upside.
Similar Scenario in NQS
The NQS is experiencing a similar scenario, with the overnight high and Monday’s high being identical. This suggests that the auction is not over and there is unfinished business to attend to. The market’s ability to maintain these levels reinforces the notion that there is potential for further upside movement in the near term.
NQ Futures Mirror ES Strength, Overnight High Matches Monday’s Peak
Identical Overnight High and Monday’s Peak Suggest Unfinished Business
The NQ futures are mirroring the strength observed in the ES, with the overnight high matching Monday’s peak. This identical high suggests that the auction is not over and that there is unfinished business to attend to. The market’s ability to maintain these levels reinforces the notion that there is potential for further upside movement in the near term.
Market Resilience and Upward Trajectory
Despite the presence of unfinished business and the need for repair in the single prints below key levels, the NQ futures have demonstrated resilience by not advertising prices below these crucial points. This suggests that the market is not ready to stop its upward trajectory, and participants should be prepared for potential continued upside movement in the near future.
Time Spent at Higher Levels Indicates Market Acceptance
As the NQ futures continue to spend more time at these higher levels, it becomes increasingly evident that the market is accepting these prices. The longer this trend persists, the more likely it is that the market will continue to advertise to the upside, following the same pattern observed in the ES. Traders should keep a close eye on these developments and be prepared to adapt their strategies accordingly.
