The market remains in a range for the past 6 trading days and volume was noticeably lower in the underlying cash market yesterday at just 3bn shares on NYSE, and with 1.4m ES contracts trading. The high left yesterday was poor and appeared to have been formed as day time frame inventory got too long and corrected.
The market overnight has ranged between 2106.75-2119.75 versus settlement at 2106.75. The ECB press conference is at 7.30ct at the same as the US Intl. Trade Balance is released.
The key support/resistance zones are highlighted below. Given the aggressive overnight rally my expectation is we are likely to either see an inventory correction, or a continued rally as shorts are forced to cover a break from balance.