With the exception of the iShares Russell 2000 ETF (IWM), which traded poorly for the entire session, all the major index ETFs ended Monday's session higher than where they closed out Friday's, but roughly in line with where they opened Monday's auction. In a nutshell, no new information was gleaned from Monday's auction. We remain well entrenched in a wide, developing balance area where two-way rotational chop is the name of the game.
By now I trust everyone is at least moderately familiar with Hillary Clinton's tweet that rocked the biotech industry Monday. Her tweet, which indicates she will introduce a plan to contain specialty drug pricing on Tuesday, sent shares of the iShares Nasdaq Biotechnology ETF (IBB) crashing lower. What's interesting, at least to technically oriented traders, is the IBB had already been rejected from its 50-day simple moving average (SMA) on Thursday Sept. 17, and has been struggling to hold above its 200-day SMA and recapture its 150-day SMA for the past week.
Did Clinton's tweet act as a catalyst to send biotech shares plummeting during the day timeframe? Absolutely. However, was the sector, as represented by the IBB, on thin ice prior to Clinton's tweet? You bet. The end result is pretty simple. All trading beneath IBB's 50-day SMA is bearish.
Moving on to Tuesday's E-Mini S&P 500 futures auction, I want to begin the session with a focus on 1965.25 and 1947.75. All trading within that roughly 18-handle range is expected to remain rotational and trendless. Put another way, if you aren't comfortable playing the role of day timeframe scalper, you've little reason to participate within that range.
A sustained trade above 1965.25 opens the door to bullish continuation toward 1973.50 and 1982.50 -- 1985.25, while all trading beneath 1947.75 results in bearish price extension, and shifts our focus toward 1936.50, 1927.50 and 1920.
Any trading or volume profile related questions can be posted in the comments section below, emailed to me at email@example.com or posted to my twitter feed @ByrneRWS.