Friday Prep

Yesterday’s open tried to move price back to settlement but underlying stock momentum was positive and the down move was short lived. The rally cleared the overnight high and found support there before an attempted move back to the 2728 CHVN. The move fell short of there and had a fast liquidation drop into the close. The after hours results from AMZN and GOOG have led the weakness overnight with nearly an 80 point range from last night’s high to the overnight low.

The overnight range is currently 2690.00-2646.00 on above average volume. The move below Wednesday’s lows is going to be an important pivotal area today . Acceptance below there keeps the pressure on the downside. We've not really seen any panic selling yet and we may not until the February lows get taken out. That’s still around 100 points below here which could easily be done in a day or two at current volatility. At that point if there’s no follow through below the Feb lows there’s room for some very aggressive rallies. In the meantime, a lack of downside momentum is likely to see buyers try to move back to the 2728 CHVN.

Keeping a close eye on NQ today as likely to be in the driving seat as AMZN is roughly -10% pre-mkt.

It’s the lack of downside follow through and momentum that can enable the big turnaround moves. However, in the absence of any majorly positive news today the main expectation is for sellers to step in on rallies and try to hold below Wednesday’s low.

Today’s zones of interest: