The Very Short-term Mirrors Short-Term and Intermediate-term Conditions

Wednesday’s engulfing candle in the 30 minute time frame needs to be confirmed (a close below 2,036.72) for price to begin a retest of support.  Thursday’s opening range is so far a bullish rebuke, encouraging bulls who see this as a setup for the next rally above 2,089.70.  We get the sense that the very short-term mirrors the short-term and intermediate-term condition.  Bulls have time on their hands, bears lack conviction.  A trend line break with volume will be required for any upside breakout both short- and intermediate-term.  Very short-term, the opening range suggests traders fade the open below 2,054.

Absent any trend, momentum should be the leading indicator short-term and it is just above neutral.  Bulls need to put their shoulder into it (volume-wise) to push above the Wednesday high (2,057.74).

Call with any questions.

Steven Charest

Managing Director, Chief Market Strategist