The lack of downside pressure after the open saw a wide and fast first half hour (nearly 40 point range). This move was a bit too far, too fast and price action was poor for several hours until buyers regained dominance in the afternoon, pushing to close near the high.
Overnight has kept the upside momentum with the range currently 2682.00-2714.00 versus settle at 2685.50. At current price the market is looking to open on a large gap of approximately 20 points. This will add to pressure on short positions from the last few days and could cause a rapid squeeze in price (next target 2728 CHVN). Whether we see an early attempt to close the gap or just a fast move higher will help determine what type of day we’re likely to see. The least likely expectation is to start trading back inside yesterday’s range, but if that occurs all longs from overnight are offside. Zones of interest for today below: