HUGE volume in the Stoxx/DAX overnight to the short side – on the order of 30% above typical. The S&P is following suit, especially with institutional orders jamming sell volume at 4x buy volume overnight. Friday’s rally into the close was nothing but short covering on the day. The big picture has been showing signs of weakness for some time to the long side and it has finally caught up. That said with the absence of economic news there may be no reason to sell off the open, but still gap fills on heavy volume to the opposite are less likely. Fading the OH will be in play as will be fading Friday’s VPOC at 54.50. A scalp fade of the OL will be treated much more cautiously in case of a break down. WATCH order flow there closely. If it does break we will wait to sell around the 44.25 as there is a cluster of potential support in the 46’s and a key swing at 44.50 which may be interim support. Beyond there the next support is 36.50. If the gap does fill a long around 53.25 into 54.50 would be a good bet as well.