Friday Prep

Going into yesterday’s open, the overnight market had traded lower and was attempting to move back up towards the prior day’s low. As stated in yesterday’s note: ‘a move higher that fails to move back inside yesterday’s range is bearish..’.

The first move after the open was a test of the 2924.00-2925.50 zone (marking the lows from the prior two days) and this was immediately rejected, giving a heads up. The first break through last week’s low (2907.50) saw a pause and bounce from the 05-06 zone back up to the overnight low, giving another good opportunity to get on the short side. Once broken through the prior week’s low, the breakout high from January was next target, which saw roughly a 10 point bounce off it. New lows were made in the afternoon with cumulative delta showing a divergence, eventually moving back to vpoc (2907.75), settling at the same level…1 tick above the prior week’s low.

Overnight has ranged between 2900.75-2915.50 so far, ahead of a keenly watched employment report at 07:30 cst. Despite the breakdown in the daily and weekly bars, the monthly remains neutral, inside September’s range currently. It was at least the beginning of some range expansion and volatility, which is a welcome sight with lots of rotation opportunities.

Zones of interest for today below: