The overnight session was fairly quiet up until CPI data at 8:30am which pushed some sellers onto the tape. Overall the session is normal in range and volume and trading in the upper quad of yesterday’s session.
On deck this afternoon we have Fed Chair Yellen speaking at 1pm. We have the Baker Hughes Rig Count data out at the same time.
Yesterday we printed a short squeeze-type profile, P-shaped. Sustained trade below overnight low 4523 is what sellers want to see to take back the session.
Heading into today, my primary expectation is for buyers to work higher to test overnight high 4535.50 and take it out to target the NVPOC at 4543.50.
Hypo 2 sellers sustain below 4523 setting up a washout lower to 4500.