The S&P 500 has suffered a 60+ point drop in three days; a bounce at this point should not be a surprise at all. 1086-1088 is a strong area of support, and we have the December Low at 1080.50 below that. I'm anticipating the 1080-1086 area to hold as support, and the plan is to look for Long opportunities there. At the same time, I am expecting rotation in the 1101-1103 area, and the 1109.50-1112 area and will be looking for Shorting opportunities there. Overall, I'm expecting a range-bound price action but with a bullish bias. Volatility is also coming back into the market, and the average daily range of the S&P is now around 20 points. As a result, we're also getting wider rotations, so the initial scale-out or profit target can also be increased.
Econ Data
Existing Home Sales at 9:00 AM (cst)
ES - Daily Chart with Volume Profile and Key Levels
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