The market began the session with a rotational move lower out of Friday’s balanced profile, creating a downside imbalance. A prior NPOC near the opening at 6956 may provide interim support. From a pure profile-structure perspective, the imbalance favors continuation, with any pullback toward the prior session’s lows likely to attract sellers adding to core short positions.
 

From a medium-term, monthly perspective, the broader regime remains risk-on, though Bitcoin trading lower introduces some offsetting risk sentiment and may serve as an early signal of a potential equity pullback. Investment-grade credit is showing mild weakness, and the 10-year yield remains elevated, reflecting a more hawkish rates backdrop.

Looking ahead, the prospect of a new Federal Reserve leadership framework in the coming year could eventually reintroduce a more dovish policy outlook, which may support a renewed bullish tone.

With thin holiday liquidity during the second holiday week, larger intraday swings are possible, though expectations remain for generally balanced conditions until participation increases into the New Year.

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