We finally got a directional move yesterday, once the market had pushed and held above the initial resistance zone at 67-68. The resistance zones were targets and not areas to fade once the break was on, as stated in yesterday's prep if there was a break above IR. Most strength was in the materials sector following comments from Trump.
The move higher was on fairly low futures volume of 1.2m contracts, and the action was forced with shorts squeezed and weak structure left in the day's profile. This would be expected to be filled in though the trend higher is in play for now.
Overnight has ranged between 74.75-82.25, holding an area of support from yesterday's rally. If 74.25 breaks I would expect small liquidation but for responsive buyers to step in at the zones below (depending on news/volume etc.).
The bias is clearly bullish and continuation is the main expectation. The two resistance zones marked below are targets short term based on fib extended retracement levels and not necessarily areas to fade. Shorts could continue to be forced to cover and we could see similar type action to yesterday. Alternatively, we may see some consolidation at these higher prices before continuation or a brief break lower to find new buyers. We would need to see a break below the 59.50-62.00 zone to change the short term bias to bearish.