Yesterday we saw an overnight market which had balanced above prior value. On the open there was a look above the prior day's range, failure and reverse. This rejection is also around the value area low of the August to date range shown above.
Market internals trended negatively all day and some rapid liquidation moves left a stretched profile with several anomalies. Volume was high at 2.88m contracts and 5.02bn shares on NYSE. It was the largest Globex range so far this year at 68.50 points. The daily average is now 49.25 points since Jan 4th. Open interest has been steadily increasing each day.
Below shows the breakdown yesterday covered the naked VPOC at 1880.50 and reached the 127.2% extended retracement. A test of yesterday's lows could see a flush down to the next nVPOC at 1866.00, near a composite HVN at 1868.50, and the 161.8% level at 1861.50 which coincides with a composite LVN. We may see responsive buying step in around there for a short term bounce and attempt to fill in some of the areas shown above.
Overnight so far the range has been 1874.50-1897.75 with volume still high.
The bull/bear zone I'm using today is 1881.50-1884.50. Above the 1904.00-05.75 zone we could see shorts scramble to cover and rally up towards yesterday's overnight low at 1922.25. Below the bull/bear zone a move down to the 1858.25-60.75 may see responsive buyers step in. 1861.50 is the 161.8% ext. retracement level.