So here's my pre-market analysis - it's 6:13am EST right now...
Europe, Asia all well up.
Nice gap up to start the week, we are above the value area we've been in for a while. Volume overnight is about 28k above average at this point, so nothing to write home about.
My
opinion here is that we will be a lot more likely to find sellers than buyers at these prices and of course, it's easy to say that because we've come off 10 points since the open.
1349 would be a good place to short if we make it there but I would guess a test of the ONH is more likely. If it doesn't move up to a more attractive place to sell, then sell bounces to LVNS on the way down.
In terms of potential longs, it depends on the volume IMO. If we move up on strong volume and pull back to 1341 or 1337, I'd consider a long.
There is also a major LVN at 1320 that sees us filling the gap and the moving on up. Hard to really see us dropping that low if this is the start of a move up and it does not fit in with the method but I can't help but think it's an ideal place for buyers to step in.
It will be an interesting day, it's entirely possible we'll just rotate around this 1331-1341 area and balance as the market 'takes on' these new prices.
So there's my 4 hypotheses for the day.
Bottom line though - we are way above value here, so unless a lot of new buyers come in, I don't see how we stay up here.
Summary, options are:
Buy 1320
Buy Pullbacks to 1341, 1337 after aggressive move up
Sell 1349, Overnight high