S&P500 Expert Lounge Update –September 12, 2016

Good morning everyone,

These are key timing for today:  9:30AMEST, 2:00PMEST

These are key MA levels:  5EMA 2158,  50DMA 2163, 100DMA 2121

These are key Fib Levels:  2127, 2139

These are key primary and intermediate levels:  2131(intermediate minor), 2126(primary major), 2115(intermediate major)

Here is today's market look at the S&P 500 for Monday, September 12, 2016:

The market continued its waterfall in the overnight session but with the substantial bounce this morning it looks to recoup a good deal of the earlier losses.  Cyan seems to be the odds on favorite at present with the early morning strength, but keep an eye on the gap and tick tools to see what makes sense at the open of regular trading hours and the coinciding timing window.  Price action will be the primary focus as there are no economic releases to speak of, but there are a few Fed heads to speak.

MSP

MSP

How price behaves around the primary major level will be important to note because it will give clues to what kind of price action we should expect going forward.  A solid rebound from that area will likely produce a more pronounced bounce, but an overshoot to the downside should be taken as a warning that areas below that level will want to be tested.

Primary and Intermediate Levels

Primary and Intermediate Levels

As noted on the historical extremes chart last week during banter in the expert lounge, there was a substantial void between newly formed extremes and the existing.  As soon as selling began, this gap turned into a massive vacuum and traversed the gap very quickly.  Now that we've reached clusters of historical extremes again it is most probable that price will become choppy again.  Keep a close eye on the tools and timing into market open to get an idea of what is in store for the session.  Good luck today!

Historical Extremes

Historical Extremes

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