Early trade on Friday ranged between the 2088.25-89.75 to 2095.00-96.50 zones, but sellers failed to have any momentum to the downside. With value building higher and shorts trapped at the upper zone, the break higher accelerated as shorts were forced to cover. There are two distributions left on the day split between 2096.00-96.50. Volume was only 1m contracts and 3.4bn shares on NYSE, a big drop from the prior day. The settle at 2101.50 was also the VPOC on the day and the VPOC from Wednesday. Longs will need to hold the upper distribution range or risk seeing a drive back through the lower range and revisit the naked VPOC and anomalies from Thursday's profile.
Overnight the market has drifted higher and is net long with a current range of 2098.00-2107.75. Bonds continue to sell off and the dollar index has regained some of last week's losses. There are no major economic announcements due, but Chicago Fed President, Charles Evans, is speaking on the economy and monetary policy at 11.25am ct.
The short term trend is higher so a push into the 2107.75-09.25 and 2111.50-13.00 zones is possible as the hunt to flush out shorts continues. Failure at the initial zone could see a move back towards the high volume node at 2100.00 and acceptance below 2096.00 could see more aggressive liquidation of weak longs. The 2095.00-96.50 support zone is also a short term bull/bear zone.