Friday Prep
Yesterday opened within prior value, briefly tested the VAL on fairly neutral market internals and proceeded to break through the VPOC causing another squeeze on shorts into the break down area from the 21st. Prior broken initial resistance became support on the midday retest.
A poor high was left again and the profile was P shaped indicating short closing action. Volume was again low at around 1.1m contracts.
Overnight has stayed within yesterday's range and is currently 2356.75-65.75 on low volume. I would expect a pick up in activity into today's quarter end close. For bulls to keep dominance there will need to be acceptance back inside the RTH low from March 20th at 2365.50. Holding above there keeps the pressure on shorts left open. I would still expect to see sellers step in to defend the breakdown from the 21st. Failure to move higher and a break below yesterday's overnight low at 2356.75 could start a long liquidation move from short term positions. The weekly VPOC is at 2357.50 and the monthly at 2365.00, pretty much the same range as overnight.