The primary US stock index futures contracts sold off Monday and are just above critical KRAs (Key Reference Areas created by Auction Market activity) in the short-term time frames. In the intermediate term time frames they are almost perfectly “balanced”. Balance always eventually transitions to Imbalance and these are markets that are poised to move sharply, soon. Auction Market analysis is not about predicting direction. What it does do is to identify the market condition in which there is a probability of a sharp directional move. The directional “tell” in the present situation is a trade beyond the border of the HVN (High Volume Node). These levels are highlighted on the charts below for each of the four indices.
The minimum target for the break is the extreme of the Auction being analyzed. In this case it will be either the high of the May-June period to date in the case of an upside break, or the low of the same period in the case of a downside break.