Wednesday Review
Following Trump's speech we've seen a relentless bid under the market and a near parabolic squeeze higher. The near 40 point full session range yesterday saw cumulative delta peak around +75k into 2400. Short exposure being covered has accelerated the move higher leaving a large range gap in RTH, well above the February VPOC at 2362.25.
Overnight there's been a slight drift lower, with the range currently 2389.50-94.00. Yesterday's overnight high at 82.75, 50% pullback of yesterday's full range at 82.25 and yesterday's open at 81.50 is the initial anticipated support zone. Yesterday's market profile left a poor high at 2401.00, likely a function of short term traders getting overly long into the highs.
Buyers remain in control and shorts are vulnerable to a further squeeze while the market holds above yesterday's initial balance high at 89.25 and a re-test and potential follow through of yesterday's high would be on the cards.
If 89.25 fails then initial support at 81.50-82.75 would be the next expected buyers response zone. Acceptance below initial support leaves the open gap to test.
Zones for overnight: