By Sharedata Futures
- Balance development early week near last week’s settlement where buy excess developed.
- Sellers trapped before buy-side breakout developed, driving price higher to 89.69s.
- Bullish breadth trends modestly higher.
- This week’s auction saw balance development before buy excess and trapped sellers resulted in price discovery higher to 89.69s, new all-time highs.
In this article, we examine the significant weekly order flow and market structure developments driving Technology Select Sector SPDR Fund (XLK) price action.
As noted in last week’s XLK Weekly, the highest probability path for this week was for price discovery higher, barring buy-side failure at key support, 87.90s-88.40s. This primary expectation did play out as balance developed early week near last week’s settlement before buy excess formed.
Sellers trapped in Thursday’s auction before price discovery higher developed to 89.69s, new, all-time highs ahead of Friday’s close, settling at 89.49s. 09-13 December 2019: This week’s auction saw minor price discovery lower early in Monday’s auction as last week’s late buyers failed to hold the auction. Price discovery lower developed to 87.30s where buying interest emerged into Monday’s close.
Minor price discovery lower developed early in Tuesday’s auction, achieving the weekly stopping point low, 87.15s, where buy excess formed, halting the sell-side sequence. Balance developed, 87.15s-87.83s, in the remainder of Tuesday’s trade before buying interest emerged again, 87.33s, into Tuesday’s close. Minor price discovery higher developed in Wednesday’s auction, achieving a stopping point, 88.03s, as buying interest emerged into Wednesday’s close.
Structural buy excess developed early in Thursday’s auction as sellers trapped, 88s. Aggressive price discovery higher developed through prior major resistance, achieving a stopping point, 89.03s, into Thursday’s close. Selling interest emerged, 89s, early in Friday’s trade, failing to hold the auction as price discovery higher continued, achieving the weekly stopping point high, 89.69s. Selling interest emerged there, halting the buy-side sequence ahead of Friday’s close, settling at 89.49s.