Wednesday Prep

Review

The above chart shows the combined market profiles (time) and volume profiles for the year so far (full Globex session). The balance continues around the 2265.00 VPOC with the value area between 2258.25-2270.50. There's a step in the volume profile at 2267.50, so if there is a break higher through that we may see support there on retest.

Yesterday's RTH session traded between the initial support and resistance zones. The underlying market was weak in momentum terms, as shown by the TICK. There are weak highs to retest at 2274 and 2277, with no selling tail shown at the all time high yet.

Plan

Overnight so far has ranged between 2261.25-68.50. CPI and Industrial Production are due at 07:30 ct. Crude is about 1.5% weaker and the dollar has bounced following its recent selloff.

The bias remains neutral short term and bullish long term. A break and hold above initial resistance with decent volume and momentum puts the all time high at risk. Another test of the 57.25-58.25 support would be the third attempt to break through so will be watching internals closely. Meanwhile, if overnight support at 61-62 holds on test and buyers push back above the 64-65 bull/bear zone, this would signal strength and potential continuation higher.