The S&P 500 gapped lower in the E-mini session on Monday, reaching down to the 2750 level before turning around to fill the gap, and then rolling over again. As I record this, we are midday and it looks rather troubling. It seems that there is still a significant amount of overhang of supply in this market, so I think that rallies at this point are to be sold until we can break above the 2800 level substantially. That being said, there does seem to be a massive amount of support just below at the 2750 level. In other words, I want to see a break out to the upside before I put money to work in a more comfortable manner. Otherwise, I would need to see the low taken out at 2700 to start shorting. I think this is a market that probably is going to continue to be very noisy, but it also looks like one that could suddenly reverse on you.
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S&P 500 and NASDAQ 100 Forecast October 23, 2018