posted 6.45am EST
Sellers are in control.
Buyers were given an opportunity to respond for three days by resting sellers. Their response was ineffective.
This week opened lower on Tuesday and spent the session building value just above 790. The VA was lower and narrower, less volume.
Risk is high for longs. If there is any kind of relief rally it would most likely stall in the 815 area.
There is a good possibility of a fast acceleration down to terminate the cycles into the time pivot at the end of this week/early next week. Should that occur the downside target would be minimum 753.
If there’s an aggressive test of Tuesday’s low soon after the open that doesn’t bounce back fast, then it would be likely that drive down has started.
However, I see Wednesday’s price action as most likely to be ranging with time spent between 790 and 795, similar to Tuesday. If the day seems to be developing like that I’d look to sell any overbought technicals on the 5 minute chart above that area.
