Thursday Prep


The opening drive lower and bounce off support was about the extent of any excitement in yesterday's RTH session. An inside day with a strong buying response off the low (also the value area low of the year so far).

The 2 min chart below shows the reactions between the zones and a weak/neutral TICK and A/D, which didn't support a move higher.


Overnight has ranged between 2261.50-2268.25 on light volume versus settlement at 2266.50.

The zones are exactly the same as yesterday with a short term bias neutral/bullish. The strong buying tail from yesterday showed a lack of selling pressure and once again the dip got bought. We should get movement outside of the range once the inauguration is out of the way and odds favour an upside break to take out the poor highs that have been left over the past couple of weeks. However, anything can happen obviously and if the market breaks and holds below the 58.25-57.25 zone I'm cautious of longs and the zones below are targets. We could still see responsive buying but this will need to be watched in real time along with monitoring market internals etc. 

As said yesterday, a break above the 67.25-68.75 zone and pullback to there could offer decent support for a continuation rally. 

Zones below on 30 min and renko charts: