Despite yesterday's overnight squeeze higher we saw the market settle at it's lowest level for the year. The RTH high at 1896.25 was a 50% pullback from the recent swing high to low.
Overnight has seen new lows for the year with the range 1829.25-1878.50. Despite the negative trend the market has potentially got itself too short overnight and there is potential for a squeeze . The overnight profile has balance well below yesterday's low. We may see a squeeze to force overnight shorts out before resuming the downtrend. If this fails to happen the chances of hitting the August lows today have increased I believe.
Zones of interest for today below and I have moved the bull/bear zone down to 1880.25-82.25, which was the pullback high from yesterday afternoon.