Review & Plan - Thursday

The 4hr chart above shows the very concentrated volume area created over the past 5 years, which you can see it has tested the low volume edges of each side in the past week.

Yesterday was a frustrating one for longs given the prior day trend day as the market failed to push through the overnight high and trended lower to finish on the low below the prior day, also closing the gap. Crude was strong yesterday but even that failed to lend support, though bonds were strong along with a sharply weakening dollar index.

The high was made in the initial 77.25-78.75 overnight resistance zone and low in the 57.50-59.75 daily breakout support zone.

Prior Day's Zones


Overnight the market has managed to hold the low from yesterday and found responsive buying back up to the 71.00 prior VPOC. The range is currently 2057.50-71.50. The move lower yesterday would have shaken out weak longs and also trapped late shorts.

Plan for today:

The overnight rally is building value above the lower volume distribution from yesterday afternoon, between 60-64.50, though volume is fairly light. If that area holds then would look for reversal of yesterday's action and potential break of Tuesday's high and extreme upside target at the 91.50-93 zone, though expected move is to 84-86.25 zone.

Watching for what reaction we see at the 71.50-73.00 overnight resistance zone

Acceptance below 64 puts chances of continuation lower to 53-54.75 or 46-49 intermediate bull/bear.

Crude is rallying but unlike yesterday, bonds are selling off and the dollar rallying.