Friday opened and looked to be attempting a push lower below the prior low towards the open gap. Shorts did not have the fire power and we saw a covering rally breakout after the first two hours. Longs regained control after a deep pullback to the breakout level and closed above the overnight high. NYSE volume was low at 3.2bn shares.
Overnight has seen a move higher initially through Friday's high, though this has sold off as we get closer to the open. The range currently is 1946.50-64.25 versus settlement at 1950.25.
For today, initial support I'm using is 1950.25-51.75, then 1946.00-48.00, 43.00-44.00, 38.00-40.00 and 35.25-36.25 as longs major inflection point.
Initial resistance is at 1957.25.00-58.25, then 61.50-63.50.
Following Friday's action and the move higher overnight I have a neutral bias. The lack of economic news today may keep trade quiet and I'm going to wait for the market to give more information on who's in control.
It's clearly a huge week for markets with FOMC on Thursday. On the longer timeframe, the chart below shows anticipated areas on breaks above and below the current balance.