The key to the near-term direction in the US stock indices remains the TF (Russell). After flirting with an attempted breakout above its recent multi-day balance area the TF retraced the entire range and closed below its HVN (HIGH Volume Node). As long as the TF is trading below 79920 the path of least resistance in any of the stock indices is down.

The S&P (ES) spiked above its Balance Area extreme and spent the remainder of the day chopping its way lower, then almost doubling the day’s range in the last few minutes of trading. 1397-1394 is a KRA (Key Reference Area) and potential support, but the potential of a false breakout trade would carry the ES to the 1388-1386 area at a minimum.

The Nasdaq 100 (ENQ) is between two HVNs, one above at 2733-2783 that may serve as resistance and one below at 2713-2708 that is potential support. If the TF and/or ES reach downside targets make note of where the ENQ is trading at that time. If the ENQ can hold 2713-2708 it probably signals another rally attempt.