Review & Plan - Wednesday

Following the awful terrorist attacks in Brussels yesterday, the overnight range did not break far to the downside but left the market short going into the open. Following the open the market had a brief look under the prior two day RTH range lows and found buyers.

The distribution above the overnight high saw longs eventually liquidate and rotate back towards the POC/VPOC. Volume was fairly light and a poor high was left on the day showing the upside auction is likely unfinished.

The 4 hour chart below shows the longer time frame distributions of the past 5 months. Yesterday's high coincided with the breakdown area from the end of last year.

The hourly chart below shows the development of value in the past month using custom profiles. Value continues to move higher towards the highest volume traded price of the past 5 years at 2061.50 (back adjusted data). The current balance area is 2026.75-47.50 and short term bias remains bullish unless we start to see acceptance below current value with negative price action and order flow.

Zones for today are shown below and data due here.

Overnight so far has been in a narrow range between 2037.75-45.25 versus settlement at 2042.50.

The primary expectation is for continuation higher, breaking through yesterday's poor high and targeting 2061.50

The top of yesterday's buying tail and low of value is a key support area for today to hold (2035.25-37.50). If trade accepts below this area then we could potential break the current balance low and target the lower zones down to last week's VPOC at 2006.75. However, I would expect the 2026.75-28.75 zone to hold if longs are to retain short term control.