The headline driven weakness overnight yesterday followed through for the first half hour, breaking straight through the prior day’s low. Most of the morning was choppy upward drift hitting a high one tick ahead of the prior day vpoc. There was a clear downward shift in TICK momentum as the high was made (see 1 min chart above right) which ultimately led to a break lower in the afternoon session.

Overnight so far the market has bounced and the current range is 2878.00-91.25 vs settle at 2882.50. A slew of European industrial production data was better the consensus forecasts, ECB announcement as expected and pending is US CPI and FOMC minutes.

Zones of interest today are above (right). A lot will depend on whether the market can break and hold above the 90-92 zone (in which case the recent weak high at 2900.00 looks vulnerable) or fail to and possibly consolidate around the current month vpoc which is now at 2882.75, and/or push lower. Higher timeframes remain bullish obviously.