The overnight session printed two small rotations lower, taking us around three handles off the closing print. Should price sustain these levels into the opening bell, the placement suggests we may see a quiet morning auction.
The buyers may make an early attempt to fill the small gap, taking us back up to 1646.50 and perhaps press into yesterday’s value area high at 1648.25. I suspect we’ll find sellers here, at least initially, as the market awaits the FOMC Minutes at 2pm and the Ben Bernanke commentary after the bell.
It looks like sellers will have a hard time pressing into Monday’s value, but should the selling accelerate, I would look for the market to test down to 1632, which is effectively the launch point from early Monday.
I’ve highlighted these levels in the following profile chart:
