Friday's reaction to the employment report saw a move lower pre-market, below the overnight support zone. This acted as resistance for the cash session, though we didn't see any meaningful sell-off and the RTH range was just 6 points. Volume remained fairly low at 1.1m contracts and the market settled at 2545.00.
The major data for the week starts on Wednesday with the FOMC minutes, PPI on Thursday and CPI & retail sales on Friday.
Overnight so far the range is 2543.25-49.50, overlapping higher to Friday's RTH range. A composite high volume node (CHVN) has formed at 2549.00 which may end up being pivotal for direction if that continues to build.
Zones of interest for today are below. If the 44.75-46.75 zone holds I'd expect to see a further breakout higher. How that breakout occurs needs to be monitored closely to see if it is likely to fail or not, depending on underlying strength. If that zone fails then we could see some short term liquidation into the 38.75-39.75 zone or potentially the zones below if volume, momentum and the other markets are in alignment (i.e NQ & TF). I'm happy to sit out for now as the upside seems over extended short term and I don't want to short yet against the current multi-time frame bias.