As noted in Thu’s analysis, focus on response to the unsecured low area, 58.80s-60s, was key in Fri’s auction as selling interest drove price lower from there. Globex balance ultimately gave way to a Sell Spike, 59.10s-58.40s, resulting in price discovery lower toward the Daily 2nd Std Dev Low. Focus on response to 58.50s-57.40s, into Mon’s auction.
Friday’s Micro-Blog Excerpt
Noted here during Friday’s auction was the auction to the Globex Low, looking for the initiative sellside there. The sellside appeared driving price lower, forming a Structural Sell Spike, 59.10s-58.40s, implying the potential for price discovery lower. Noted are the key reference levels based on our database. Ultimately, the market auctioned lower toward the Daily 2nd Std Dev Low before the halting of the sellside auction occurred.
As noted in Wed’s analysis, focus on response to 60.40-61s, was key in Thu’s auction as selling interest drove price lower, achieving a Stopping Point, 60.10s, during Pit session hours before selling off toward 58.80s. Focus on response to the unsecure low area, 58.80s-60s, into Fri’s auction.
Noted here during Thu’s auction was the shakedown of the weak Globex long inventory, the failure of the initiative sellside to defend low which resulted in the formation of a Buying Tail, 60.10s-60.45s. As noted, this formation implied the potential for price discovery higher and expectation levels provided, 68.10s/61.40s were both achieved before the Stopping Point High, 61.50s. Finally, noted was the implication of the failure of the Buying Tail for price discovery lower, which ultimately unfolded toward the Daily 1st Std Dev Low, 58.83s.