1. Support
1.1. Minor Support
1.1.1. 1,846
1.1.1.1. Buy the Pull-back at or near 1,846.
1.1.1.1.1. Risk
1.1.1.1.2. In the event of a break-down below minor support
1.1.1.1.3. The rally up to 1856 is predominately short covering: i.e. buying back what was previous sold, with little or no new capital entering the market.
1.2. Maximum Likelihood Estimate
1.2.1. 1,816 - 1,817
1.2.1.1. Ideal Entry
1.2.1.1.1. Insider's Tip | A move down from the prior day's close equal to the distance of an Average Daily Trading Range is a high probability stopping point.
1.2.1.1.2. The traders than has the options to adapt the trading strategy and sell the break-down with the expectation that price will auction down to major support.
1.3. Extreme Price Excursion
1.3.1. 1,800
1.3.1.1. Major Psychological Support Level
1.3.1.2. Midpoint of the developing trading range
1.3.1.3. February 13th, 2014 | Low
1.4. Major Support
1.4.1. 1,832 - 1,834
1.4.1.1. Friday's Low
1.4.1.2. Prior Major Support
1.4.1.3. A move to 1832-1834 will exceed the average daily range extension estimate and thus is likely to elicit a buying reaction during an initial pull-back: i.e. price discovery.
1.4.1.3.1. Substantive Long Opportunity
1.5. How To Buy Support
2. Resistance
2.1. How To Sell Resistance
2.2. Maximum Likely Expectation
2.2.1. N\A
2.3. Major Resistance
2.3.1. 1,883 1,887
2.3.1.1. Fractal Record High
2.4. Average Daily Range Extension Resistance
2.4.1. 1,868
2.4.1.1. Insider's Tip | A move up from the prior day's close equal to the distance of an Average Daily Trading Range is a high probability stopping point.
2.5. Near Term Resistance
2.5.1. 1,860
2.5.1.1. Thursday's High
2.6. Minor Resistance
2.6.1. 1,856 - 1,857
2.6.1.1. Sell Resistance
2.6.1.1.1. Minor resistance is as equally a weak level as Minor Support. The price structure that developed during Monday’s session has sufficiently met the requirements to have re-balanced the previous short inventory.
2.6.1.2. It is no longer a question of a supply imbalance. The question is a matter of buying interest.
2.6.1.2.1. Order flow is now the determining factor as to whether or not S&P futures auction higher or sell-off and return to Friday’s trading range.
2.6.1.2.2. Initiated buying (HFT Buy Surge) at the high and or initiated selling (HFT Sell Surge) at the low are the order flow events that traders are advised to focus their attention on.