Review

The gap higher and continuation to new highs was yesterday's main expectation, though volume was only 1.3m contracts. The move up is leaving weak structure below which will run through quickly when we do see a correction. However, the bias remains to the upside until proved otherwise.

The market internals were not excessively bullish as you can see below. There was an reaction off the second resistance zone and a pullback to vwap before continuing to new highs before the close. There has been a strong sell-off in bonds over the past few days with the move higher in stocks, more in keeping with asset allocation switching out of bonds into stocks.

Plan

Overnight has pushed to new highs with a range of 2291.75-99.50. I'm using a short term bull/bear zone at 94.50-95.75 as I think if the market fails to break through that we may see some short term liquidation into the zones below. This doesn't alter the medium and long term bullish bias. Holding above 95.75 should lead to continuation through the 2300 level. There is no hard resistance above clearly and I'm not looking to fade a run up until we see a change in short term trend.