Wednesday Prep

Yesterday's overnight move back to the CHVN at 2152.75 following the failed break out. The RTH opened at that level and popped up a point before the drive lower, straight through the high volume support area from last Friday. After making a temporary poor low in E/F periods, which had breached the recent balance low at 2132.75, we saw a short covering pop to a tick below the initial balance low and passive absorption was evident by sellers before the next leg down. 

Overnight so far the range is 2129.75-40.75 with the majority of volume traded below yesterday's VPOC. 

I'm using 2132.75-34.50 as the bull/bear zone for today but would still expect sellers to be dominant on rallies into the first two resistance zones. Yesterday was an impulsive move and my primary expectation would be for sellers to attempt a drive lower on pullbacks. A move back above the 2146.25 level could see some aggressive short covering up to the 2152.75 CHVN. Zones for today below: