Review & Plan - Friday

The RTH chart above shows a heavy market yesterday which failed to hold above the recent range high volume area and rotated lower into the close. Volume was 1.6m contracts on the day and 4.1bn shares traded on NYSE. Missed earnings estimates from GOOG after hours added to the overnight weakness.

The RTH 2 min chart with market internals & cumulative delta below shows how aggressive buying late in the day failed to push prices back up much which looked like day traders closing shorts and possibly longer term passively selling on the offer.

Overnight has extended the range lower, currently 2077.75-2089.00. There is currently acceptance below the value area of the recent range so it waits to be seen if sellers defend the value low and we see continuation lower into the prior range, or whether buying interest can squeeze out the recent shorts. Short term bias is bearish within the longer term bullish context. Major corporate earnings and crude remain dominant factors.

The 2087.00-89 is my short term bull/bear zone.

Zones for today: