Friday Prep
Europe has been weak overnight, pulling ES below yesterday's lows. I'm using 2353-55 as the bull/bear zone for today. Yields are down sharply in the long end with the 30yr back below 3%, currently 2.99%.
If we see acceptance below 53.00 then there's a good chance we could have a liquidation break down to last week's value low (2332.50). However, the overnight move has been driven by Europe and depending on market breadth and momentum after the open there could be a short covering rally if the 53-55 zone is regained.
The support zones shown below are all valid response areas in line with the longer time frame bullish bias but order flow and market internals will need to be watched carefully for signs of continuation lower or not. A squeeze higher above the bull/bear is likely to gravitate to the week's vpoc area at 59.50-61.00, where the market broke down overnight. Above there is potential for a further short squeeze back towards the highs again.