Monday Prep

The overnight gap up is trading in the composite low volume area highlighted in yesterday's note as a key pivotal area for rejection or continuation. The range currently is 2102.75-2112.00, stopping just short of the 2112.50 Oct 28th low which the market broke on liquidation.

The large gap has trapped any shorts holding from the past 3 days and it's unlikely it gets filled today without negative news. 

How the market reacts to the 2105.75-07.50 overnight support after the open should give a clue whether we continue squeezing higher into longer time frame resistance or attempt to partially fill the gap, back down to last week's vpoc at 1998.50. This coincides with the short trap area from last week, above the 98-00 zone.