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Emini S&P futures a review of price action

There is participant anxiety here ahead of Q2 earnings and it is justified. Although I believe that we will merely grind up over the course of earnings, the Nasdaq could be approaching a ceiling in its’ run up and that could lead to some consolidation. Looking beyond my opinion which isn’t really worth much, what I am seeing from the ON futures price action is that we rejected the highs above 4363 and sought out the lower end of the Fib long extension below 4343.75. Value did not degrade much on this ON move lower and I strongly believe participation will tend towards attempting to grind this higher and make newer highs. In the world of interest rate speculation and tapering of liquidity by the Federal Reserve, longer term yields are edging lower as market participants await a batch of important economic reports, notably data on inflation, due later in the week, as well as Fed Reserve Chair Powell's testimony on Capitol Hill on Wednesday. In the near term, participants will likely key in on a 10-year Treasury auction after it slipped below 1.3% last week, hitting a low not seen since February. 

Possible scenarios and outline for trade positioning

• Ideal long trade positioning actually evolved here in the premarket and 4343 area was the best positioning with a stop below 4339. That setup which still has room for participation could see us squeezing higher into 4375.50.
• Shorts today will have only cyclical opportunities in the intraday so taking it early perhaps into the ONH would not be a bad idea as long as you have a strategy to exit in a timely fashion as this grind higher will otherwise be consuming.
• Not much of a gap to refer to from Friday’s settlement therefore gap rules for this move higher in the premarket into the open, do not exist.

Key Levels to factor for the intraday price movement.

TPO Mapping

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