Tuesday Prep

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Yesterday opened at 2576.75, a fresh all time high for the RTH but 2 ticks short of the overnight high. Higher prices were rejected immediately and we saw a slow and steady sell-off. The move down into the bull/bear zone (69.00-70.25) was after breaking the initial balance low and overnight low which was a heads up to be cautious on longs. Breaking below the bull/bear zone saw it retested from below and then accelerate towards the open gap zone (60.50-62.25). Market internals remained moderately negative throughout, and we saw balance breakdowns in the NQ and TF also.

Volume was 1.2m contracts and settlement was at 2563.50, which was also the VPOC on the day. 

So far overnight the range is 61.50-67.50, just testing below yesterday's range. The zones remain pretty much the same today. Longer time frames remain bullish but short term is neutral after yesterday's action and I'd expect to see sellers try to defend the 69.00-70.25 bull/bear zone and attempt to push below yesterdays range into the 54.25-55.25 zone where we could see buyers step in.

Above the B/B, I'd also look for sellers to step in at the 71.75-72.50 zone, though a failure for that to hold would indicate that the march higher isn't over yet. 

Headline risk remains high as we could hear Trump's new Fed chair pick at anytime.