The SnP 500 futures gapped up at the opening, leaving us with the impression that the market might make a higher closing at the end of the day. This was not to be. With an opening that had a negative opening tick, the net issues opened at -110 and fell below -200 by about 10 AM eastern. This left one with the feeling that the morning might not conform to robust action as a gap opening might suggest. One cue to keeping on top of it is that the 54% chance of an up closing was near even odds, not encouraging, while it was clear a gap down opening would work better due to the 72% chance of an up closing.

The gif is of the June Emini contract, which was rolling over to the September contract, and reflects a diminished tick count. It is obvious, due to the internals, that the contract couldn't hold at the previous closing, and thus shot below the Pivot and the Up Closing Profile Low. This placed the entire day into the down closing profile camp. Support came in at the Down Closing profile close, and more importantly found support at S1 and the Down Closing Profile Low. The support in this region validates the S1 and the Down Closing Profile Low support mentioned last night as a place where support would or could occur.

Don Thompson