Review & Plan - Monday


The break lower on Friday left a gap and double distribution, along with a poor high. There was acceptance back inside the prior balance area, below Friday's bull/bear zone at 88.75-90.75. Despite the sell-off, NYSE volume was not high at 3.5bn shares. Rollover from June to September continues with September now higher in volume ahead of expiry of June this Friday.

The day session 1 min chart below shows the reactions at Friday's zones and likely short covering into the close off the 79.50-80.75 zone back to the day's VPOC.


Friday's low has been breached and so far acceptance within the lower distribution from Friday. The range is currently 2077.00-84.75 vs settlement at 2087.25.


Sentiment has been risk off driven largely by increased likelihood of a Brexit (according to polls). The bull/bear for today will be between the double distribution from Friday. Acceptance within the lower half increases chance of continuation lower and above of attempting to fill the gap from Thursday/Friday. 

Day time frame Bull/Bear 2084.50-86.00 - acceptance above could see a short covering rally but still has overhead resistance.

Intermediate Bull/Bear 2069.50-71.50 - acceptance below here could see a more serious long liquidation

Zones for today are shown on the 60 min and 30 min charts below: