Tuesday Prep
Yesterday opened at 2321.00 vs the prior day low at 31.75 and settlement at 44.75, leaving a large gap and shorts sitting on decent gains. The failure to take out the overnight low by 1 tick was the first evidence that shorts could start to cover.
The 2 min chart below shows reactions at yesterday's zones. We got acceptance back above the bull/bear zone. Clear reaction on first test of the 40.50-41.50 and support at the B/B before another attempt to break resistance before the close.
Overnight has seen a range between 2334.50-44.00 so far, having sold off from the highs since the European open. I'm keeping the bull/bear zone the same and if that continues to hold I would expect further balancing within the upper range of yesterday or another attempt to squeeze shorts above yesterday's high. If the market starts holding below 31.75 then sellers are likely to be active looking for a break down again.
Today's zones below for today: