posted 8.55 a.m. est
Pre-open Tuesday 19th January
Last week I marked one instance of Significant Buying and no Significant Selling. The support level at 1129 held up but ES probes that level again pre-open today.
As discussed in this week’s webcast/eBook both ST and LT Sentiment measures are indicating that the market is overheated so if ES prints some time below 1129 then a move down to the next support at 1108 would be likely. However until I mark some red (Significant Selling) I’m assuming the Buyers are still in control and I would not look to short.
Here’s the important levels for this week:
10dayPOC 1135 – First level of resistance. First indication of further strength will come if ES prints some time above this level.
25dayPOC 1129 – Sellers couldn’t auction ES below this support last week.
Note that 1127 is the bottom of VA (Value Area) on various timeframes. If Buyers are interested in auctioning ES higher in the short term, I would expect them to respond to a test of this level. But if this price is accepted (time spent) it would suggest that the more likely development is down to test the 50dayPOC at 1108.
