Yesterday was a very slow, balanced day spent trading between the double distribution HVNs from the prior day. Settlement was at 2471.25 with volume at 1m and just a 7 point RTH range.

The last half hour saw a sharp liquidation break to new lows, followed by a rally to the high after news that Justice Department Special Counsel Robert Mueller has issued grand jury subpoenas related to Donald Trump Jr.'s 2016 meeting with a Russian lawyer at Trump Tower.

The balance area from the past week shows the lack of conviction currently in the market and has appeared to have been dominated by short term traders.

A poor high has been left on yesterday's profile, plus as mentioned in yesterday's note, we are likely to see a big short squeeze above the IR zone as long as there is enough strength behind it. Yesterday's late dip below IS zone was quickly reversed leaving a buying tail.

Overnight the existing zones remain in play and we've once again seen responsive buying off the IS zone straight up into the IR zone. The employment report in a few hours could be the catalyst to break out of balance either way if there are any major surprises to expectations.