Another crucial thing to take note of about Thursday's action is that we formed an inside day on the SPX. This is a very powerful pattern that usually results in the next day giving us a large move in either direction. If I were to pick a direction I think I just may lean to the upside here.
For Friday the pivot on the ES futures is 822.50. Right now we are trading right at that level so it should be interesting to see how we open. If we do stay near this pivot I wanna look for long trades in the morning as I think they might push this thing into the 850s by the weekend. We still have that gap fill zone in the 860s as well.
If we fail to get over the pivot in the morning then I will be looking to trade from the short side and we could easily see the low 800s once again if this 820 area fails to hold. It will be interesting to see who wins the tug of war going into the weekend but I do think we are in for a nice move either way Friday.