Yesterday's overnight liquidation break trapped recent short term longs who'd been trailing the slow and steady move up. It appeared to be a big move because of the relative ranges we've had recently, but the drop was insignificant in percentage terms and the move into the 2542.00-43.00 support zone (see last prep) saw selling abate and buyers step in. The composite HVN at 2549.00 became a pivot to rotate around before buyers initiated a move back up to take out the overnight high at the close.
If yesterday's blip was actually to be believed we would've seen far more negative readings in underlying stock momentum via the NYSE TICK. The NYSE A/D was going to open at a low level anyway due to the fact it's based on the prior day's close, but it actually began trending higher after the first 45 mins or so.
The yellow box in the profile chart below highlights the poor high that lasted through late morning before finally breaking out to close the range and settlement gap.
Overnight so far, we've seen shorts annihilated once again as the market proceeded to blast through the all time high again taking buy stops with it and accelerating the move. It's so important to detach what you think should be happening and how apparently insane this market is starting to look, from what is actually happening, how other participants are likely positioned or where they want to be positioned based on multiple time frames and ranges.
The range overnight currently is 2559.50-71.75 versus settlement at 2560.50 and the regular hours ATH at 2562.00 (62.25 Globex). If buyers are going to dominate today then I would expect the 60.50-62.25 zone to hold before continuation higher. The 74.25-74.75 zone is not hard resistance, but a measured move and potential upside I see today.
If we start accepting back below 60.50 then I'd still look for responsive buying at the two zones below. If it starts trading below 50.25 (yesterday's open) then sentiment has likely turned heavily and there may be a retest of yesterday's low.