Monday was a slow and choppy wait and see kind of market day. Everyone is sitting on their hands waiting any bank plan news. The high was 873 and we just kinda glided lower into the close. After hours the market is lower by a decent margin. The low after hours is already in the low 850s. If this level holds then we are in a nice size gap down in the am. Expect at least a 50% gap fill in the morning either way.
The pivot for Tuesday is up at 866.50. If we get back up there on a gap fill or anything then expect some harsh resistance in the area. But if we surpass the pivot on Tuesday I think we can go straight to 876. On the downside if we cannot get over the pivot then I can see this market retesting the 845 level where there is a large long ambush trade waiting. If we can hold that level then the -23.6% retrace target is up at 886. Let's just see if we can fill the gap in the morning and get back over the pivot. If not, then I will have a short bias to start the morning.