Overnight, the S&Ps returned to the 1320 area that had been a key reference level through February/early March. Lots of trading around this level during that period. You can see on the 9,000 Tick chart how the market accelerated through that area last night and then came back to test it, indicating its importance.
Yesterday, the market had an outside up day, which often has limited follow-though the next day. However, the market is already up about 8 points from yesterday’s close. We will likely have a gap open. Watch the first 15-30 minutes of price action. If the market holds the gap, the odds favor higher prices.
Levels for today that I am watching are the 1317.75 – 1320 area just below trading in the pre-market. The lower number being yesterday’s US high. Below that are the previous two days’ highs: 1314 – 1315 area, and below that is 1307.
Higher levels will have us run into the 1327.50 area. This is the high from March 1st. Are they looking to close the month above its open? I don’t know and spend little time thinking about things like that. What I do know is that this is a logical level that would be attractive to the market if we continue to rally. Remember, anticipation; not prediction. Just above is the Globex high on that date of 1331.50.
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