Sellers took control after the open, continuing the drop from the overnight high. Value built below the overnight low and continues to build within the past few days. This continuing inside day action will add to the energy when we see a break from balance.
Overnight the range is currently 1935.25-49.50 versus settlement at 1944.00. There's been little reaction so far to the Retail Sales, which were weaker than expected though with prior revisions up. Industrial Production is due at 8.15am ct.
Below is a micro-composite volume profile of the past few days of balance which shows the VPOC at 1943.50.
For longs, the initial key level to hold above is yesterday's overnight low, which became resistance yesterday, at 1946.50. This is also the VAH of the micro-composite.
Shorts will need to hold below the mcVPOC and attempt a press down below yesterdays VAL at 1938.75.
Quad witching on Friday is going to potentially lead to some very strong directional moves if there is a break from balance with option gamma hedging exacerbating the action.