posted 9.28 a.m.
Pre-open Monday 14th December
Last week I marked two instances of Significant Buying, both on Wednesday following an early test of the 1088.50 poc. Buyers were responding below three weeks Value but this is not yet Effective Buying. I have not marked Effective Buying or Selling for nearly four weeks which is typical of a range bound market.
I said pre-open Thursday that 1102 was a good reference level – “it is the 1/2 range off the 4th Dec high. Consolidation above that level or obvious support for a higher low on the intraday charts would signal higher.” In Friday’s day session we saw a higher low supported at that level (see chart) and ES has been as high as 1118 overnight.
ES has been trading in a range since early November. The poc for that period is 1108 which is First Level S/R today. I marked 1108 on Friday as First Level S/R and you’ll notice that this level was resistance during the day session. ES has now overcome that resistance which should now be watched for support early this week – If ES can hold above that level it is a sign of strength.
Friday’s pre-open comment remains valid – “Waiting for Effective Buyers or Sellers to be marked is frustrating but prudent in a range like this and ES is showing typical ranging behaviour at the moment. Odds are back slightly in favour of the Bulls with ES trading above the halfway point of the range and the last imbalance being Buying (green). Interesting to see if Sellers Respond again at 1108 or above”.
