The market opened at tick above the overnight high yesterday and managed to hold above the prior day's value area for the whole session. Volume was low at 1.1m and the morning was extremely slow with a lack of underlying stock momentum in the NYSE TICK. There was an attempt lower after making a poor high early on, and this left a 1 tick failure below the initial balance low. The destination then became the open range gap, which it eventually closed, along with a higher moving POC/VPOC.
After hours we had the tragic news of the terrorist attack in Manchester. There was a risk off move initially but this was very brief as markets have become all too used to these situations, sadly.
The full session chart below shows yesterday's zones (with volume profiles splitting the RTH & overnight). The move up into the 96.75-98.50 resistance has been accompanied by a falling cumulative delta. That is a zone I would expect to be strongly defended by sellers. The overnight range is 2386.75-97.75 so far, versus settlement at 92.75. If that zone breaks I'd expect a run through 2400 and would be looking for sellers to step in at the 2402.50-03.75 area.
PMI and New Home sales are due 15 and 30 minutes after the open. With volume falling on this rally the case for shorting is building if we don't see decent strength and momentum on the upside. However, a squeeze higher back up to the ATH is still possible, although my main expectation is for a break before that happens. So far we've seen responsive buying on any break and for a sustained downside move we shall need to see volume stepping in and downside momentum in stocks, across the board.
Zones for today: