Thursday Prep
Pre-market, the primary expectation was for continuation of the dominant trend with the potential to consolidate and/or shake out weak longs before rallying.
Opening inside the prior range, there was little downside selling pressure, with a move into the overnight support zone. The 5 min footprint chart below shows a failed attempt lower as selling dried up once the prior day's POC (2899.50) had been hit. Once back above the opening range, shorts were squeezed into the overnight high and size stepped in above there to lead the trend higher.
A P-shaped profile was left on the day, with 3 areas of single prints left on the rally, which is often a sign of short closing where buying is aggressive. These are areas which have a high chance of being revisited once the short rally consolidates.
The afternoon pullback low was at 2911.25 - holding above or below that level today could be the difference between trend continuation or short term consolidation. Clearly if we do see a break lower, below yesterday's low, then a retest of the breakout of the January ATH at 2888.75 is a probability. However, primary expectations are still bullish/neutral bullish, depending on where the market opens in relation to 2911.25.
Overnight so far the range is 2907.00-16.25 versus settlement at 2914.75, having sold off from the high early in the session.
Today's zones of interest are shown below on the split session profile chart: