Opening Play – Friday 1/17

After a gap down opening, the SP cash tested back to the hourly EMA where support came in. The Sell Short day ended up being Lows made first, but the reaction back up found resistance at the bottom of Wednesday’s Value area.   Interestingly the day was spent filling out the area between the prior two days value areas (see market profile chart posted below).  The pit session gap was filled in both the SP and the DOW, but remains untested in the Russell.  Since the Russell had a narrow range (NR7) bar, there still is a chance that this can be traded to on Friday.  Or, the market can do a better retest back up on the big cap blue chips.   Main levels for the SPs:  1834.25,     1831;  To the upside:  1841, 1844.   1831 and 1842 were Monday and Tuesday’s POC.

Gold and Silver:  Textbook Breakout Mode/three bar triangle.  I posted a big picture composite of the volume node for gold, and it closed perfectly at this level.  I do not know what a catalyst will be for it to move out of this range, but watch the 2-day high and lows on both Gold and Silver.

Beans:  Buy and morning weakness towards the 5 SMA.  Though they have had a  good swing up, they closed 15 cents off their highs and any further weakness will set up  some type of partial reaction  up for a scalp.   Wheat has a double bottom in place but upside might be limited as it needs to fill out range.  580 is first upside test.  \

Roll to April Hogs – triple bottom on the daily charts put in nice base.  And….

Options Expiration for equities.    I normally do not put much significance in this unless it is a triples but many shares made new highs in the last week….sets up the possibility of small unwind activity.



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