Posted 8:22 am PST:
The key feature in today’s intraday update is today’s small trading range within yesterday’s trading range day. This is breakout mode price action, but with two hours of quiet trading, the day will probably remain a small trading range day. However, with today being a Friday and with weekly support and resistance near, a breakout up or down is possible.
As long as the market does not sell off too far, it might have a late rally to the 1955 area, which is where the open of the week and the close of last week are. The low of last week at 1936.25 is also close enough to be a support magnet. Today is a Friday and weekly support and resistance can be important at the end of the day because they will determine the appearance of the weekly candle pattern. The bears want this week to be a sell signal for next week and the bulls want a strong bull trend bar.
Since the price action is quiet, a breakout up or down probably will not go very far. Most likely, today will be a trading range day, or it will have a brief breakout and then form a trending trading range day. However, traders should be ready for a strong breakout up or down and the conversion into a trend day, although this is not likely, given how the market has been since the middle of yesterday.