Review & Plan Jan 13th

The market continues to trade on high volume with 2.42m contracts trading and 4.87bn shares on NYSE. The aggressive downside moves from the beginning of the year have seen some equally aggressive short covering rallies in the past couple of days. A 50% pullback of the year to date swing high to low is at 1953.50. Crude has been a major market driving force and we saw a big reversal from the lows once it breached $30 yesterday. Financials were the best performing sector yesterday.

 Yesterday's moves

Yesterday's moves

Overnight the market has continued higher, balancing above yesterday's value area. Crude is $1 higher at $31.50.

The range is currently 1922.25-1946.50 versus settlement at 1925.00

I'm looking for higher prices today though my bull/bear zone is 1930.50-32.75. If we begin to trade beneath there then I'm looking for at least a test of the overnight low. The average range this year has been 46 points for the full session - overnight so far has been 24.25.

Zones of interest and anticipated moves for today: