Review & Plan Jan 19th

Year to Date

Friday made a low for the year on the highest volume for both ES and on NYSE after taking out the lows from Sept 29th and reversing strongly. We may have seen a short term low and see an attempt to push back up towards the 1980 area this week, where the breakdown began, which has potential to be a fast short covering rally. However, I'm watching the resistance zones carefully for signs of heavy responsive selling if it pops higher. If the market remains below the 1892.50-94.50 bull/bear zone I'm staying cautious on longs, and if it starts to trade below 1960 it's a warning sign we could be heading towards the August low.

The regular trading hours chart below shows the large settlement gap left from Thursday.

Overnight (and including yesterday's electronic trade) the range is 1859.75-1906.50.  There's been a bounce in Crude and weakness across the Treasuries. 

Zones for today are below. Above the 1892.50-94.50 I'm looking for long entries on pullbacks, which is the primary expectation today. Below there we could re-test down to Friday's VPOC and the 1868.50-71 zone