Thursday Prep

Yesterday's inside day turned into a churning session which built value below the overnight low and 'felt' heavy despite stopping exactly at the 100% extension of the initial balance (2337.50), which would indicate short time frame traders were more dominant. Opening inside prior value can lead to the type of action we saw yesterday and sometimes it's best to stay out until the market shows its hand or it's easy to get chopped up.

Trump's afternoon comments about the dollar being too strong saw yields tumble and bonds have broken out of a multi-month range, with yields closely correlated to moves in USDJPY. Headline risk is elevated with the current geopolitical tensions around Syria and North Korea.

Overnight has been weaker in equities with ES ranging between 2332.25-44.00. Notably the selling has been more aggressive with cumulative delta hitting -24k at the low. If we don't see a covering of overnight shorts it could be an indication of more serious selling to come if it breaks the bull/bear zone (31.75-33.50). Earnings from the financials will be a key driver for flows.

Zones I'm using today below: