The market is beginning to form an area of balance where we may see two-sided trade. The composite volume profile shows the 1938 high volume node as a pivot the market has been trading around. The key level for either side to control though is the December '14 low, which represents the break of the years range.
Volume on Friday was a healthy 2.1m contracts on ES, though underlying share volume was low at 3.1bn trading on NYSE.
Overnight has seen a strong move higher following better than expected GDP from the Eurozone. The range is currently 1930.00-1961.00 versus settlement at 1921.75 and Friday's RTH high at 1930.75. Gap rules for today and currently we're looking at a 20 point gap which is less likely to fill, especially with the bullish sentiment overall. However, even if it does and value remains above Friday, we could see a late move in the direction of the gap.
Due to the size of the gap we may see a volatile open. I'm expecting some attempt to push into it but will be looking for long opportunities on exhaustion moves lower at key areas mainly.