A failed break through initial resistance left a selling tail between 64.50-67.50. The 67.50 level was highlighted last week as being an LVN of the current multi week range, and important to find support at if there's a break through to the upside. The upside failure saw a sell-off to take out last week's low but there was no follow through and buyers pushed prices back above the middle of the day's range but below the range VPOC at 64.50.
Market internals were not majorly bearish on the move lower and became more positive once the bottom of the 52.25-54.25 zone had been tested (see below).
The overnight range has been narrow so far at 2259.50-64.25 on light volume versus settlement at 62.00.
We're still seeing two-sided trade and I think that until the 67-68 resistance or 50-52.25 support is broken with volume and momentum, helped by the Nasdaq and Russell in alignment, we may continue as it has been.
If the initial resistance is broken and becomes support, I would use the upper zones as targets and be cautious of fading unless there are clear divergences in market internals. There are still several weak highs, including the all time high.
On the downside, if 50 breaks I'm expecting a push through the 48.50 swing low into 42.50-44.50 which was a support area from Jan 3rd. If that zone fails to hold we could see a flush through to the 34.50-37.50 zone, depending on volume/momentum etc.