From a big-picture perspective, today's action in the e-mini S&P 500 represents an "inside day," which means that today's range fits "inside" of yesterday's significant down spike and thus is inconsequential to the larger trend.

In other words, so far today's action is a rest-digestion period within the decline from Oct 27, which when complete should resolve itself to the downside in a retest and likely violation of yesterday's low at 1180.50.

Only a climb above 1198/99 will trigger intraday signals that will argue for a possible run at important resistance at 1208/10.

 

Mike Paulenoff is a 26-year veteran of the financial markets and author of MPTrader.com.