After Friday's wide overnight range, the market opened near the low of the range and attempted to push higher back into the gap from Thursday's low. This brought sellers in ahead of closing the gap and the overnight low became the shorts objective. Value was lower than the prior 3 days though the area of support from 09/14 held and prevented further falls. This is an important area for longs to defend or risk a more major sell-off. It was the quarterly expiry so volume levels were high in the futures and underlying stocks.
Overnight the range is 1938.50-1964.25 versus settlement at 1950.50, with a bullish bias in the last hour or so. Housing Starts are due at 9am ct. Expectations for today are possibly:
1. Open within Friday's range and consolidate.
2. Open within Friday's range and attempt to close the gap from Thursday.
3. Reject Friday's high and push lower to re-test the overnight low.