Late Session Update Puffed This is the fourth weird session,...

Late Session Update

Puffed

This is the fourth weird session, imo. Today there is low volume precision. Day traders are having fun but no one else is committing. Sellers and buyers are weak and there is an even more automated feel to the session than usual.

The SPX futures made a high today of 2835. SPX made a high of 2829.87. Then the futures fell back to 2815.25, which is precisely the point that joins yesterday and today's sessions, thus closing the overnight gap. You can see that in the chart below where I have removed the overnight session. It has since fallen into the gap.

The high is too perfect. It is devoid of excess or the overshoot that is typical when there is bullish momentum. It is easiest to see using a market profile. That might have happened today because very short term participants were targeting that high. Traders may consider this in the context of this skittish market psychology and other unusual things that are going on in DC.

There is more weird stuff. The VIX lost nearly 10% intraday but the 10-Treasury futures stayed within yesterday's candle body and are gaining back their losses as of this note. A-D lines are positive but have obviously fallen and NYSE breadth has been moderately strong at 2.5:1 positive and NDX 1.34:1 but overall volume is weak. It's a rather confusing picture, imo. The Dow is the weakest index, the RUT is struggling to get above its 50 day average and the NDX is the second weakest after the SPX.

If you zoom out to the big picture, heaviest SPX weekly support begins at 2750. If you zoom in looking at the futures profile you see 2815 as sort of a neutral zone. Below that you have 2795/2800 as an area bulls do not want to see violated for very long. There is that area of high volume at 2780 as well. Weekly resistance is 2830 and unless they can breach it again fast it may hold -- bullish catalysts don’t seem very apparent.