Tuesday Prep
Another bullish session with RTH gapping above the recent range and failing to fill that gap on the attempt in the morning. Once reversed and trading above the Feb 5th high at 2763.00, bulls are fully in control and shorting becomes a dangerous option.
We are leaving weak structure behind but the immediate pressure remains higher, as the market gravitates towards the high volume 2800-2805 area (with 2800 a high option open interest level too).
FOMC Chair Powell testifies today, so expect volatility as the order book evaporates and the dollar and bonds likely drive moves.
Zones for today are below and will be cautious on shorts unless evidence shows up things have changed in the short term. The market is stretched short term so a good idea to exercise patience, especially ahead of the testimony later.
I'm travelling tonight and tomorrow so will update again on Thursday morning.