Tuesday Prep

From yesterday's prep: There remain weak highs above which have a good chance of being taken out if the 72.50 level can hold, which is a composite high volume node (CHVN). 

The market opened at the 72.50 CHVN after overnight attempting to force out some weak longs. Once open, shorts were trapped below the initial support zone from overnight and we saw a spike higher in the first 30 mins as seen on the profile chart. 

Also from the prep: On the upside we still have the IR zone at 78.00-79.50 which if broken becomes support, as we saw on Friday.

We can see this is exactly what happened after the initial blast through the IR zone, with the pullback into it giving another buying opportunity for both new longs and covering shorts. Having rejected the overnight low, the target became the overnight high after taking out the weak high from Friday. As is often typical with a short covering day, we had a P shaped profile formed.

Overnight so far the range is 2575.25-82.25 on light volume. I'm using 77.25-79.25 as the short term bull/bear zone. Above there, the all time highs are back on the cards with some expected responses at the red zones shown.

If that zone doesn't hold then yesterday's low comes back into target in the 70.25-72.50 zone. We could see a buy response of the 67.25-68.25 and 62.00-63.50 zones, which were launching areas from last Thursday. Acceptance below there traps the recent longs and we could see a liquidation break. Also from yesterday:   This month's low is at 62.25, which if broken puts last month's VPOC/POC and mid point into play at 2549.00. If the market begins to accept below that level risks derailing the bull in the intermediate time frame and we could finally get a move lower to retest the breakout from the 2504-09 area.