The broader market (mainly the Russell 2000) was weak from the outset yesterday and the S&P played catch up later in the day. There was a notable disconnect in the NYSE A/D when the market was just a couple of points away from prior settlement and yet the A/D was at -1000.
The extension lower tested a breakout area from July 8th and the weakness remained into the close leaving strong resistance in the 2099-2100 area. This also leaves a lot of shorts trapped above this zone and a squeeze higher is possible, though there are still larger time frame resistance areas above on any pop.
Overnight has seen an initial move lower to the July 7th nVPOC at 2084.00 and a rally to the highs at 2098.75, which is resistance from yesterday.
News overnight has focused on the Pound, which rallied on news of a high court ruling that the UK parliament has to approve the triggering of Article 50 and the Bank of England announcement/statement. US bonds sold off a point tracking the move in UK Gilts.
Zones for today are below. Despite the bearish sentiment and price action of the last week or so the market is vulnerable to a short covering rally if the 2098.75-2100.75 resistance zone is taken out, with sellers likely to step in at the zones above. On the downside, if 2091.00 holds then odds are good that the market tests higher, though if that fails I would expect the overnight low to possibly get re-tested.