Review & Plan Feb 22nd
Friday was the second lowest range of the year and lowest volume of the year at 1.59m contracts (second lowest on the NYSE at 4.122bn shares).
The last three day's balance will be a pivotal area for this week in my view. The market has moved far and fast from the lows leaving a couple of gaps in regular trading hours. If the market fails to hold above the high volume area of the past few days then there's a danger to longs that gaps will be filled below. I'm using the Feb 17th RTH low at 1904.00 and Friday's value area low at 1907.00 as my bull/bear zone to start the week.
Overnight has been imbalanced higher with a range currently of 1908.25-1938.75. Volume is below average though. The high for the month so far was 1940.00 on Feb 1st. If we see a move above the overnight high to tag that and then fail, I'm expecting a move back towards the naked VPOCs at 1931.00, 1921.00 and 1914.00. Below 1904 I'm looking for the weak low on Friday to break and gaps to fill below.
Zones I'm using today are: