Monday Prep

The overnight relief rally in equity markets following the first round vote of the French elections has put approximately a 25 point gap to Friday's close currently. This will have trapped many short positions and I would not expect a gap of this magnitude to be closed today without some very negative news. The breakout through the flag pattern formed on the daily chart above puts the all time high back on the radar and short term bias back to bullish. However, it could be difficult to trade today and I'd prefer to see the how the day develops in relation to the gap or continuation move.

The zones of interest for today are below. I'm expecting balancing at higher prices and a choppy first hour or so as the market adjusts for the large gap.