Yesterday's plan pointed out the importance of breaking either the 21.25-23.25 support or 47.75-49.75 resistance zones to continued direction.
The open attempted to move into the break down area from the prior day, but there was little follow through and bullish internals in the NYSE TICK and advance/decline supporting longs.
The move higher looked to squeeze shorts out, which is evident by the anomalies shown above. The more shorts that kept trying to fade the trend, the more this helped the trend as their buy stops become targets for the big players to accelerate the move.
The market one time framed for the full session, closing on the highs. The open range gap from the Jan 6th to 7th break lower was closed between 1969.00-71.50. The next reference above is the naked VPOC/POC from Jan 6th at 1985.00/85.75, which the market has nearly hit overnight.
Volume was 2.03m contracts and 4.8bn shares on NYSE.
Overnight the range is currently 1971.25-1984.50 versus settlement at 1978.00. The swing high from Jan 7th at 1991.00 would be the next key target for longs to push above and get back inside the balance area from mid October to December last year.
The immediate hurdle above would be the composite low volume area at 1980-82.25, which is where the major break down occurred at the start of the year. This could see responsive sellers step in to defend. Above there, the 1990.75-92.75 zone is the next major area to defend for shorts or open up for a move towards the composite HVN at 2015.00 and Jan 5th high at 2017.00.
Below, the key area for longs to defend initially would be yesterdays VPOC and high volume area from 1965.50-68.50. Holding this would keep buyers in control short term. Below there the weak structure caused by the short covering has potential to get filled in down to the 1946.50-48.75 zone, which would be the last support zone I'd consider any longs, so this would be my micro bull/bear zone as well today.
Zones for today and anticipated reactions below: