Tuesday Prep

Yesterday's volume of only 877k contracts and 6 point range was kept low with some of Europe on holiday. The breakout area from June 1st highlighted above is a poorly auctioned area we could see revisited, though initial defence is expected of the 23.50-26.25 zone.

A break of 23.50 with sustained volume and momentum would then target the 17.50 breakout point and IBH from June 1st. As long as the 23.50-26.25 zone holds, we have a poor high from yesterday and a lack of excess at the all time high to carry forward. There will need to be a significant pick up in volume, momentum and breadth to take out the highs.

If the overnight low is rejected after the open then we may see an attempt to close the range gap that is likely. The overnight range is 2426.25-35.25, with the trend lower along with a weak Dax during the European morning.