Review & Plan - Tuesday
Review
There was a large gap higher on yesterday's day session and a push through the prior week's high which saw buying fade at higher prices and selling pushed back into the prior week's range. Sellers dominated after the morning high and the target became the open gap into the close.
Overnight
The market remains jittery to any Brexit polls. The overnight range so far is 2074.25-86.00 versus settlement at 74.25. Germany released a stronger than expected ZEW survey which has lifted European stocks.
Plan
High risk event: Janet Yellen is speaking at 9am cst for her semi-annual testimony to the Senate banking committee.
The mid-morning pullback high from yesterday at 87 is a key level for bulls to hold above for today, and of course the VPOC at 88.25. Failure to do that would favour a closing of the range and settlement gap from Friday. Given the Brexit vote on Thursday/Friday morning, I think the odds are less likely that buying volume is strong enough to continue through yesterday's high just yet, but if it does we are likely to see a short covering squeeze.
Revised zones for today: