Going into yesterday’s open there had been a strong rally leaving the market about 26 points from the prior close and up against a potential resistance area. There was a steady sell off into the overnight low but downside momentum was not that strong, and advance/declines was still around +500 at the prior settlement. This was a cautionary signal not to get too bearish into a potentially strong support zone.
Once priced could hold above the prior day’s high, a bigger volume distribution built as buyers bought each dip leaving the vpoc at 2574.75.
Overnight has ranged between 2568.50-87.25 vs settle at 2572.50 as the market narrative gets steered back to China trade talks with an official statement expected tomorrow. The overnight profile looks poised to break higher as value builds above yesterday’s value area and high.
Initial potential support and resistance zones I have at 2570-73 and 2589.25-93 respectively. Any break higher will need strong market internals to maintain or risks failing, particularly if opening above yesterday’s high. Overnight support zone I’m using as 79-82.50. The zones above 93.00 are target areas and these may or may not offer resistance depending on market internals and context.