They decided to not only fill the first overhead gap but the second as well yesterday in the S&P 500. Today should be confined to a 10 point range between 2580 and 2590 SPX. The lower zone was tested in futures early this morning complicating the early morning trade somewhat as I don’t know if it will be tested in the day session to get a cash print or just drift up from the cash open a few points higher.
The S&P 500 was tricky yesterday, pushing toward the expected target zone quickly in the morning then testing 2570 SPX. Expecting a modest push over 2570 SPX today in an attempt to close the first overhead gap.
The S&P 500 indeed find an early morning low yesterday as expected but instead of only bouncing a few points and being trapped for the day, it pushed up to test the November 9th high. It still has the look to a lower high in the making and thus have a bias to lower. However, if 2578 SPX holds as support, a rally to attempt to fill the overhead gap is possible. Ideal in my view is that 2578 SPX is tested but only results in a shallow bounce.
Moving on from my technical difficulties, here are the gold and bond charts.