We are in the summer low-volatility sideways with the upper tilt grind. Nothing much to report today other than the obvious GC drop from eight session balance that correlates with a little DXY strength as we move closer to Friday's employment report. The 10-year note and 30-year long bond are in a kind of narrowing range with yields tightening up in expectation of that report.
Two nodes of high congestion in derivatives are SPX 4250 and 4275, both levels correlate with standard technical analysis and ES futures volume nodes, and ES 4270 is the prominent naked point of control that would be initially supportive in the event of fast liquidation. 4256 is central to last Thursday's prominent point of control. This was the day that had a very stout shape, with five ticks of excess at the bottom that start at the top of the unfilled gap from 4248.50. There was no excess at the top of that daily profile. Therefore, traders will watch the 4250 area carefully in the future. Meanwhile, weekly resistance is self-evident at 4300 and this will be somewhat contingent on NQ/NDX strength and quarter end activity.
