Next Expectations

Tuesday I said:

Yesterday the S&P cash got to 1312.88, leaving the gap at 1312.62 exposed by mere ticks. There was a bounce, but it was meek, and did not close back inside the range from May 17th. Any further bounce today should likely be retraced over the next few days. I have my eye on the 1326 area which is a small area of intraday Fib confluence. Much above that and I'd start to doubt my thesis.

S&P cash turned yesterday at 1325.86. The next area surrounds 1333.75.

Yesterday filled the gaps, and I must admit the price action looked reasonably good. I still don't know what to make of that odd overnight action, but for now I'll confine my analysis to what occurs in the light of day.

The Memorial Day holiday next Monday combined with month end window dressing could give a positive though muted tone through the end of the week. Anything below 1315 on the S&P cash would call this into question and have me reconsider what happened the other night may have been a warning.