Price had a nice bounce off of the Value Area High (VAH) at the open, and never looked back. During the overnight session and leading into the open price was range-bound in the value area. Price used the Point of Control as a spring that saw new highs today. In yesterday's Quad, I noted those two alternating views as I always attempt to just look at the internals without the bias of being long or short the index.
Accordingly, if price is unable to hold at Value Area Low (VAL) going into the open today, prices will continue to decline. We are currently (as of this posting) at the Point of Control (POC) for the previous five trading days. This is an incredibly important level as a rejection here would signify a lack of value at those lows and signify further lows to come. Don't be in a hurry to jump on the short train should we break the five day POC. Give the move fifteen minutes to work itself out before you get caught in a short covering rally and wished you had been more patient. The POC will most likely have a magnetic effect and pull extremes either way back in.
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