Buyers regained control overnight yesterday and forced more short covering action after the open. Longs will want to hold above the spike of single prints formed in the first half hour of trade. If we begin to accept within that area again there maybe some liquidation and auctioning lower to find responsive buyers again. The continuing weakness in crude will be a weight on the energy sector.
The poor high from yesterday looks to have been made as a result of the market getting too long in the day timeframe, and we saw a liquidating break into the close. A break above yesterday's high puts the poor high from March 6th at 2086.50 in the sights.
There has been some weakness overnight, testing the globex high from last Friday. The range is 2060.75-70.00 currently. I'm looking for longs above the micro bull/bear zone and shorts if we break down, bounce and fail on a retest into the zone. Context is everything, however. It's pre-FOMC day so we may just attempt to balance above Friday's high. Housing starts are at 7.30 ct.
The nearest major HVN on the composite profile is 2052.25, which maybe a magnet if the market breaks and accepts below the overnight low.