Posted 9:06 am PST.
The SPY paid dividends today, causing it to gap down, unlike the Emini, which gapped up to within a tick or so of the top of the channel on the weekly chart.
Since today is a Friday, the market will look at magnets on the weekly chart at the end of the day, like the top of the weekly channel at 1955.50 and the high of last week at 1947.50.
At 7:50, the bulls had a high 2 buy signal at the moving average. At 8:25, the bears had a double top major trend reversal sell signal. The market is in breakout mode.
The opening range is only 3.5 points and therefore should approximately double after a breakout up, down, or both. The trading range price action so far and during the rally yesterday increases the chances of a trading range day or a trending trading range day, and it increases the chances that the market will trade down soon. Because of the trading range, a breakout in either direction could fail and the day could remain a trading range day. At this point, more trading range price action is more likely than a trend up or down. A strong breakout in either direction could convert the day into a trend day.