Review & Plan Feb 10th

The market got itself too short overnight yesterday with cumulative delta -25k going into the open. We saw a correction to overnight inventory from the open tagging the overnight low and high in the first 40 mins. 

Overnight we've seen huge positive moves in the European financials as Deutsche Bank announced plans to buy back billions of debt and the government has effectively said they'll back them.

The range has extended higher from yesterday, currently 1838.50-1872.00. Janet Yellen's testimony is at 10am EST. 

If the breakout from the last two day balance is to hold then key support is the 1852.50-56.75 zone (also the short term bull/bear zone). Failure to hold that area and I'm expecting a rotation through yesterday's value at least down to the 1838.50-40.50 zone.  Failure below the 1829.50-31.75 zone and we could see a liquidation move lower so would be cautious of longs below there. 

If the market can hold above the 1865.75-68.75, which is back inside last week's range, then the next major target is the high volume node at 1890.00.