Good morning traders. Few notes on overnight action : 1. Ne | Tic Toc Trading

Good morning traders. Few notes on overnight action :

1. Neutral order flow. Defense of lows 3732 but sellers at 3775. Algorithms are awaiting RTH confirmation. Awaiting NFP. But just like yesterdays’ jobless claims, any good news for economy is bad news for the market now.

2. Key driver remains rising rates and rising cost of labor/material. Add rising dollar $DXY to the mix at $91 and you take all starch out of S&P500.

3. Another development is perception “stimulus bad! Deficit very bad!”. I have said for months, supporting S&P500 at any price will soon become deeply unfashionable with politicians. We seem to be headed in that direction with recent comments by Yellen/Jerome etc.

4. So to summarize, if we revisit the lows around 3730, it may break and expose PLOD 3720 and 3680/3666 beyond. If we bid above 3776, 3803-3811 may offer some resistance. Now 3774.

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