Tuesday Prep
The early failed breakout above the prior day’s range saw a complete reversal of the overnight move and once below the overnight low things accelerated on the downside with about a 60 point drop followed by a 40 point bounce over the last hour and a half. The extreme TICK readings on the downside indicated some aggressive liquidation going on.
The strong buying tail left on the day will be a useful guide today as if this is going to be an intermediate swing low I’d expect that tail to hold. Therefore I’m using the 2624-28 area as a short term bull/bear zone.
The market overnight has so far ranged between 2636.25-64.25 versus settle at 43.50. If the market can hold above yesterday’s settle then there’s scope to reverse yesterday’s move and squeeze shorts. Zones I’m watching today below: