Friday Prep

Once again opening below the prior day's range, the market initial pushed down towards the prior week's low and then made a failed rally back to the open where sellers stepped in heavily leading to a fairly quick move to test the 2589-91.75 composite high volume area. Shorts got trapped as you can see in the 1 min chart above, where cumulative delta was still pressing the lows even though prices had made higher lows. This can be a bearish signal of more continuation to come but it also highlights the vulnerability of shorts to a squeeze on news etc. (see H period in top chart).

Overnight the range is currently 2616.75-34.25, post the employment report. We might consolidate in the mid of yesterday's range, which is difficult for good R:R trade location.

Zones of interest for today are below: