Yesterday was the smallest range we've had for some time. Value was higher on the day, despite the aggressive liquidation in the last half hour following the break to the day's highs. The internals (advances-declines) were not supporting the break higher, plus with news algos reacting to an ECB headline regarding Greek bonds, all the action for the day happened into the close and settlement was a tick below the prior day's VPOC.

There is excess at yesterday's high, plus it sold off from the VAH of the range since the December low.

For longs to remain in control they will need to build volume above the micro composite VAH. 2060-2062.50 is a major resistance area, but a break through would challenge the highs again. If longs fail to push through the selling tail of yesterday then we could see further liquidation and shorting to at least the mcVPOC, but likely further through to attempt a downside break of the December low. The longer the range continues, the more energy it is likely to have when a break either way happens.

The overnight session began weak following the close, taking out the Tuesday RTH low by 1 tick. The range is 2020.75- 2047.75 currently, with inventory net long.

Levels of Interest: