Opening inside the prior two days range, price action was really erratic for much of the session, with some wide swings each way. Overall though, there higher highs and higher lows with what looked like an attempted breakout in the afternoon just ahead of the prior days high. This was stopped in its tracks as headlines regarding the Saudi involvement in the Khashoggi disappearance hit the wires and the market puked 30 points into the close.
Overnight has recovered much of the late drop, with the range currently 2745.25-70.25, moving up steadily from the 44.75-46.25 zone. Earnings season continues today with Blackrock, Morgan Stanley and Goldman Sachs already out and Netflix reporting after hours. With the overnight market positioned long there’s potential for a correction to this early on but failure to do that is a sign of strength and increases the chance for an upside break. Either way the short term tone seems to be more bullish after last week’s move and we could see buyers on dips.
Zones of interest today: