Review & Plan 12th Jan
After the open and a failure to hold above the overnight high, the opposite globex extreme became the target. Despite the push through the prior day poor low and hitting the overnight low, the POC/VPOC did not migrate lower. The afternoon rally was extremely fast, fueled by short covering, particularly when back inside the prior day's range and above the pullback highs shown above.
Volume was 2.48m contracts and 4.58bn shares traded on NYSE. The impact on the market by the drop in crude was the main drag yesterday:
Overnight has seen continuation of the rally from yesterday's lows. The range is currently 1899.00-1937.50. There's a naked VPOC at 1939.00. The recent downside has left the market stretched and we are seeing late shorts forced out. A 50% pullback of the high to low regular trading hours range this year is at 1953.50.
I'm bearish on the market overall but I think the market needs to rally to get shorts interested at higher levels. The overnight action has the market net long in the day time frame and will open currently on a gap higher. Zones for today: