Monday Prep

Friday’s range was much narrower than the prior two days and traded within Thursday’s range, though still below Wednesday’s low.

The morning saw some aggressive selling through the overnight low down to 2732.25, followed by some fast and wide rotations until buyers took control in the last hour driving prices a tick below the opening swing high before settlement at 2768.50, which was also the VPOC. This left two major distributions, split roughly between 2758.50-60.50. There’s also a poor high at 2779.25 and bear in mind that the low on Thursday left a very strong buying tail.

We could be looking at a corrective move today after last week’s sell-off, which can move quickly due to the short covering aggressive buying as stops get triggered. If the market can hold above the 58.50-60.50 zone then my main expectation is for dips to be bought and potential to rally up through Wednesday’s single prints and test some of the key breakdown areas from that day.

Failure to hold 58.50-60.50 is a warning that buying is not as strong potentially so we could see a more neutral/bearish session. Holding beneath the overnight low is likely to bring in much more selling short term to target Friday’s lows

The overnight range so far is 2745.25-71.25 with buyers having been dominant from the lows over the past few hours. I’m using 2758.50-60.50 as a bull/bear zone for today with other zones of interest shown below. This week’s US economic calendar is here .

For those interested in the longer term macro stuff, a couple of excellent interviews I listened to over the weekend are below. Both excellent podcasts with some very high quality guests each week.