Yesterday opened below the prior two days RTH range, within the open gap. Volume was low again and top of Thursday's single prints were tested at the settlement, followed by a run up to tag the overnight high then push through the low before rallying into the close ahead of the major earnings announcements.

The Globex chart below shows the classic continuation chart pattern, the flag, which has formed over the past few days following the breakout last week. Using a measured move of this pattern, a breakout would target 2118.25, the current all time high.

However, there are plenty of obstacles along the way, assuming there is a breakout. The levels highlighted are prior highs and areas of high volume where trade may slow down. The low volume nodes may see initial rejection on a move up but also be areas to use on a pullback for longs.

Failure of this pattern and acceptance below yesterday's low puts last Thursday's range back in the sights, with the naked VPOC at 2045.50 initially and the 2034-37 area being a major area for longs to defend or we may likely see a more aggressive sell off targeting the 10/21 low at 2008.00