Scrappy overnight volume with less than a $4 range. Open interest down slightly at ~544,000 and the GSR unchanged at ~66.40. Yesterday's action is notable; early price weakness on little volume gave way to a probe of ~$1123, a number many on the floor were using for support. The sell stops were lined up below the figure and prices quickly cascaded down to ~$1218, from a traders's perspective this immediately turned $1223 into new resistance and sellers (long and short) queued up for the bounce. Prices did the perfunctory knee-jerk rebound, stalled at $1223, then broke through, picked up trading momentum, short covering, and brought us to the late close in the low $1230s on the best volume in several days...a textbook outside up day. So today with RSI creeping slowly toward overbought let's not get carried away with dreams of the possibility of meaningful strength on sunny days in late August but continue to carefully probe the upside since our sellers were surely bruised yesterday. Option vols remain compelling low at ~15.5.
Disclosure: No positions mentioned