Review & Plan - Tuesday


New all time highs in the underlying cash market were made yesterday and the rally is showing little sign of abating yet with a global chase for yield and central banks supporting prices. Overall volume and the range was lower than it had been as the market moved into new territory.

When we do eventually see a break lower, there are multiple areas to repair in the profiles below as the market trended up forcing shorts out.

The daily chart below shows some upside target levels based on the extremes Pre and Post Brexit. Also, the 2nd standard deviation from the yearly VWAP is currently around 2164. If the rally is to continue we need to watch momentum and volume carefully.


The overnight low tested the pullback low from yesterday and quickly found buyers, and continued higher with the European markets to fresh highs. The range is currently 2128.50-2141.75, with the majority of volume at the 39.50-41.00 area. 


Retaining a bullish bias with the market holding above yesterday's VPOC at 2133.75. Below there we may see some liquidation from short term traders but will be watching for buyers to step in at the support areas down to the 2117.75-2119.75 bull/bear zone (pre-Brexit globex all time high area). Below there we may see a test of the 2104.75 pre-Brexit day session high.

On the upside there is no prior resistance, just measured moves/fib levels etc. as potential targets. 

Fed members, Tarullo and Bullard, are due to speak at 08.15 and 08.35 cst

Zones for today: