Thursday Prep
Yesterday's 11 RTH range stayed within the prior day's upper half. The failure to break through the prior day high was likely due to a lack of volume, with only 1.1m contracts trading. The lowest pullback after the break above the initial balance was at the opening price, 2351.75, a line in the sand for today. A poor high was left at 2359.75 and VPOC at 2357.25.
Overnight has so far ranged between 2353.25-62.50, breaking above Tuesday's high during the Asian session and selling off since then, though cumulative delta has remained fairly neutral. Going into today I think the risk is to the downside while the market holds below 2357.25. Shorts are likely to initiate below 51.75 and 50.00 and I'm looking for a response from buyers at 2342.50. If that fails we could see an attempt to auction down to the bull/bear zone again.
On the upside a move above and hold at 57.25 opens up the chance of a breakout to the upside. However, given the strength of the impulsive wave lower on Mar 21st, I'm not expecting that to be reversed without a fight and will be looking for sellers to defend the resistance zones above. Volume, momentum and market internals will need to be watched carefully for supporting/contradicting information.
Today's zones are below: