Friday saw an outside range day in RTH, opening above Thursday's high and closing below it's low. The rapid short covering rally last week may need to back and fill the still open range gap before any attempt at the highs again.
There was a brief test higher followed by a drive lower after the open on Friday, following the jobs report. Value was lower on the day forming balance around a prominent POC/VPOC, Opening within this area today might lead to chop until moving out of balance. The key references initially will be the overnight high and low (2048.25/2032.50), the friday afternoon pullback high (2047.00), VPOC/POC (2041.00/2040.75), settlement (2035.25) and the poor low at 2031.25. Acceptance below the overnight low should target the remainder of the open gap down to 2023.75. Acceptance above the Friday pullback high could squeeze shorts and initially target Thursday's VPOC/POC and then long selling tail from Friday. Crude remains weak and the dollar continues to strengthen. There are no major economic releases today, a 3yr auction and the Fed's Lockhart is giving a speech on monetary policy mid morning.