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.
Managing Director, Chief Market Strategist