Yesterday was the highest volume day we've seen for some time with 2.9m ES contracts trading and over 5bn shares trading on NYSE.
A squeeze of overnight shorts went for the open gap but once that failed, sellers stepped in and went for the overnight low and the gap from the beginning of October.
Year to date performance of the underlying S&P sectors shows defensives not surprisingly outperforming cyclicals:
The 4 hour globex chart below shows the area the market is attempting to fill in around the value area low of the range since the August lows.
Overnight the market has rallied from a globex low of 1928.50 (yesterday's RTH low) to a high of 1960.50 on decent volume so far.
Non farm payrolls are due at 07:30 ct
Zones for today are below. If we see a NFP number in line then we may balance within yesterday's range. The overall bias is still to the downside but we may see some sharp pullbacks before there is another attempt to push lower.