Wednesday Prep
Review
Another low volume day saw an early attempt to push into the initial resistance zone, but a lack of market breadth led to the overnight long positions bailing out and breaking down to first test the overnight mid at 89, bounce to the VWAP, and then push to test the bottom of the initial support zone. Again, a lack of volume on the downside failed to lead to a larger liquidation and the market settled around the prior VPOC.
Plan
Overnight so far the range is 2284.25-91.25, overlapping lower to yesterday's RTH range (though prior overnight low at 84.00).
As with yesterday, if the market accepts below 85.25 there's a risk of further liquidation back into the prior balance from last week with the weak structure between 79-84. I'll be looking for responsive buying at the 76.75-78.75 zone on a break lower, though if that fails we could see rotation lower into 70-71.25 and possibly the 64.50 CHVN.
On the upside, 91-92 is initial resistance and we need to see more volume and momentum than we've seen recently behind a rally to sustain the move.
Updated zones below shown on the renko and 30 min Globex charts: