Friday's RTH session balanced within the lower half of the prior day and managed to test and hold the bull bear zone at 35.25-36.75 after first hitting the initial resistance zone for a reversal. A break through the first hour high made the chance greater for continuation, but there was not enough strength behind the move and sellers stepped in to each rally. The late sell-off left a poor low at 2436.00
Price settled at 2440.00 on volume of 1.6m.
Overnight equity markets have been bid with Europe up over 1%. The ES overnight range is currently 2441.50-53.75, having been on a bullish trend since the open. Potential for a large gap on the open above settlement and Friday's high traps late shorts. .
The 60.50-61.50 zone remains very important for sellers to defend or we may see a scrambling to cover by shorts above there. The monthly trend does remain bullish, however, the excess seen on the daily all time high and subsequent reversal does look like an intermediate term high at least. The impulsive move lower last Thursday has left a wide range that the market's still in so expecting two sided activity within that range. Will be monitoring closely the market internals and order flow as prices test zones.
Zones below for today