The pre-market rally yesterday trapped shorts and the gap at the open was not filled. The high from Monday became the next target and the poor high that was left was rejected at a composite low volume node. This appeared to be weak longs liquidating. The volume was low at 1m contracts, though NYSE volume was up at 4bn shares, but this is likely a function of earnings season activity.
Longs will want to hold above the prominent POC from yesterday or there is a good chance the gap is filled and Tuesday's POC revisited. The overall context is still bullish and the 2087.25-89.50 support zone is my preferred area to look for a long with order flow & internals supporting or showing a divergence.
There are Housing Starts, Jobless Claims (7.30am ct) and the Philly Fed Survey (9am ct) to add to the mix today. Overnight so far has been weak with the inventory short versus settlement at 2099.75.
Expectations for today are either:
1) We fill the gap and test Tuesday's POC before moving back to yesterday's POC
2) We fill the gap and fail to find support and trade back into last week's range
3) We fill the gap and immediately rally higher through yesterday's POC