Yesterday opened within the prior range and rallied through the overnight high, but was swiftly rejected and there was a very aggressive sell-off through last Thursday's range. There was a decent bounce after testing last week's low back up to prior day's VPOC and settlement where sellers regained control. After balancing for a while there was a push through the April 17th low and the market then rallied back into the POC/VPOC for the close. The market had already dropped 20 points or so before Janet Yellen expressed her views on potential dangers in stock market valuations. Volume was 1.7m contracts and 3.8bn shares traded on NYSE.

Bonds (ZB) took out a major swing low yesterday and have continued their sell-off overnight. In Europe today, the German Bund has had a big move lower pushing yields up to 0.79% at one point, a 20bps jump on the session and nearly 75bps move in 3 weeks.

European equities are sharply lower which has pulled the overnight range for ES lower to currently 2057.00-2077.50 versus settlement at 2074.25 on above average volume. Until we start to see support in the bond market I'm expecting further weakness and for rallies to get sold.

Key zones for today are:

Resistance: 63.00-64.50, 70.25-72.25, 77.00-79.00, 81.75-83.75, 92.00-93.75

Support: 51.25-53.25, 25.25-47.75, 30.50-33.50