Pre-Open Commentary | March 21, 24
Condensed Insight Before the Bell.
Key takeways:
Market might seem strong after yesterday’s rally but there are couple cracks in the data.
Sellers (pros - yellow arrow on trend-phase chart) actually showed their hands, but for me, to follow them blindly, I’d need to see if they still are there after today’s session. But definietly I expect there might be some bearish action today.
Because we have bullish structure (open above Res. 1 on option structure), for considering short I want to see price trade below 5267, after that a pullback to about 5280 and even then I would want to see some kind of live confirmation like absorption or excessive buying/selling to be actually interested in shorting.
5325-35 is a major resistance for me.
5270-65 and 5240 area are support.
To conclude, meat-grinder session coming which is not really interesting to me as it needs to be monitored live. Reducing long position a bit for swing strat is ok. More important session from bearish perspective coming as soon as tomorrow (to be confirmed after today).
Notes/Observations/Issues:
First of all we are already in red GEX territory + SR1/SR2 spread is rather large which is a sign of overextended market:
Second thing is orderflow study turned green (bearish sign for June contract):
Pre-Open Commentary distills key takeaways from the analysis of the London GEX and Structure posts and also serves as my personal journal (sort of).