Monday Prep


Very low volume on Friday and balancing below the prior day's value following the early rejection higher which left a long selling tail.


Over the weekend sentiment has definitely turned more bearish and we've seen the overnight range drop to 2279.25-85.75 versus 2289.00 settlement but still on low volume. We may see an attempt to push the market back towards the 2264.50 HVN though the 74.25-77.50 zone is potentially where buyers could defend. If that fails the I would expect a push into the 64.50-67.50 zone. 59.50-62.00 is an important support zone to hold or we could see much heavier liquidation if that fails.

The long term trend remains bullish but short term neutral/bearish and a push back through initial resistance  at 82.50-84.50 could close the expected gap when it opens. However until there's acceptance above the 90.25-91.25 zone I would expect sellers to step in on rallies.

The updated zones for today are below: