Monday Prep

Q3 Performance

The monthly trend continues to be one-timeframe higher, with September's range 2445.50-2517.75 and a VPOC of 2504.75 (launching point of break to new highs and low on 09/29). The sector performance for the quarter shows growth sectors leading and defensives lagging. If we were at a market top I'd expect to see some rotation out of growth into defensives. However, that doesn't mean we couldn't see a sharp break lower from here as anything is possible, but the market appears to be supported with bullish relative moves in growth sectors. The broader market Russell 2000 has been on a tear, rallying over 10% from its low in August. Nasdaq hasn't managed to get back up to its all time high of 6025.75 from Sep 1st, but it's pushing back towards 6000 currently.

Friday opened at 2506.75, made an attempt to break higher and failed at the 09.25 prior high and moved down to test the 04.75 HVN mentioned in Friday's prep. This was the launching point of the move higher and we did see some reaction at the fib levels also mentioned on Friday (RTH range: 2504.75-17.75)

Friday's profile left single prints between 09.50-10.25 which I'd like to see revisited as a potential strong area of support on first test.

Overnight so far the range is 2517.00-2523.50 versus settlement at 2516.00

Zones for today are below. If we see a rally and failure at the IR zone we could see some liquidation. If we break lower first then I would expect to see buyers step in on the first test of 15.50 if there's not too much momentum behind the move.  I have the short term bull/bear zone at 04.25-05.50