We got a failed attempt to break through the multi time frame expected resistance zone early yesterday. Underlying stock momentum was lacklustre (see NYSE TICK on pushes into resistance). Once the early break lower had taken place, there was another good R:R short opportunity on the retest of the overnight high. Volume has been very light for the past few sessions (sub 1m contracts). If there is a lack of strength and fuel on the way up (i.e. broad market strength and volume) then the chances increase of revisiting the weak structure below (single prints, gaps etc).
Overnight the sell-off has accelerated with a range so far of 2704.50-2726.25 versus settlement at 2726.00
Currently we're looking to open on a wide gap lower. Given the market has got very short overnight we could see some covering and attempt to fill the gap, though I see potential resistance in the 2716-18.50 zone initially. I've adjusted my zones slightly for today below. I would expect a buy response in the 2700.00-03.25 zone given last week's low at 2700.50, though if that fails first target is 2693.50 (composite HVN)