Currently, we are trading below Tuesday closed at 2336.75. Under the chart you can read 3 scenarios for tomorrow.
Comments below are JDalton:
- The most negative scenario sees the market gap lower holding the gap. I think this is a lower odds play as there was considerable rotation relative to Tuesday’s lower distribution. The POC did not migrate lower during the afternoon. Had there been stronger institutional selling the POC would have migrated lower in the afternoon.
Opening and remaining within Tuesday’s lower distribution suggests more balancing action. I think this is the more likely scenario for Wednesday.
Opening below Tuesday’s low and trading back into the lower distribution is certainly a potential scenario. This would be similar to #2 above.