Wednesday Prep
Yesterday's overnight range had balanced between the prior day VPOC and the bull/bear zone. After the bell we saw an opening drive straight through this zone, leaving a 28 tick buying tail on the profile which is indicative of forcing action i.e. short squeeze. I would expect to see this area re-tested in the next day or so, possibly down to the overnight high at 37.25.
Volume was fairly light at 1.3m and the underlying market internals were not as strong as the price action suggested. As shorts were squeezed out pushing prices higher this didn't translate to particularly strong buying in the cash market, considering it was a trend day.
The market settled at 2452.75, +24.75 points. The squeeze may continue but it has left poorly auctioned areas and air pockets in it's wake.
Overnight so far the market has pulled back after a quick look above and fail of yesterday's high. The current range is 2445.25-54.75. My main expectation of today is that we balance inside yesterday's range., filling in the anomalies from yesterday's profile. We could see a return of the uptrend and break higher to test the 58.00-60.50 resistance zone if a test lower can't hold below yesterday's RTH mid (43.50).
Zones I'm using for today are below.
Initial Support 42.75-43.50 & Initial Resistance 50.00-51.50