Friday Prep

With the move and hold below the overnight low early on it looked like we were in for further downside, though the break higher after the first hour tried to change that but had little upside momentum behind it or broad market strength. When that move failed, the reversal back below the overnight low gathered pace targeting the prior day low and breakout point mentioned as being pivotal in yesterday’s note. The acceleration lower moved into the centre of the recent balance broken out of and lacked the late afternoon selling drives we saw last week.

Going into today, the overnight range is relatively narrow at 2771.00-86.50 versus settle at 2772.25. Yesterday’s VPOC at 2771.00 is also the overnight low. Expecting fairly neutral activity until either the overnight high or low is breached and held above/below.

Zones of interest today: