All markets had an inside day yesterday. In the S&Ps, volume was light. Inside days often lead to trending conditions the next day. Watch the early morning volume and breadth for clues. We will need to see strong early volume and one-sided breadth. The odds then increase for a trend day. Otherwise, we are likely to see more range-bound trading.
In early morning trading, price is trading just above yesterday’s highs. We will see if that level can hold after the US open. There is higher resistance to surmount at 1353 and 1357. We will see how buyers do if they can rally price to those levels.
If price is unable to hold after the open, watch to see if sellers can break back below yesterday’s high and the 1342 level (yesterday’s afternoon low).
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