The pre-market rally had pushed through the 74.75-77.25 resistance zone and opening above here trapped shorts once again leading to a squeeze higher into the next resistance zone and forming a P-shaped profile often seen with short covering. The structure below is getting weaker with another gap higher yesterday, but that doesn't mean the market can't continue this type of move before filling the gaps below. This article shows one of the forces at work in the move higher during this earnings season.
Overnight has so far narrowly balanced inside yesterday's upper range, above the initial spike, between 2382.25-86.75. Holding above the overnight low/top of yesterday's spike keeps the pressure on shorts. If the market fails to push past yesterday's VPOC at 85.25 which may see the market try and close yesterday's gap and test the 70.50-71.50 support. However, the market is in short term bullish mode and we may need a negative news/earnings catalyst before filling the gaps below.
Zones of interest for today below: