posted 9a.m. est
Pre-open Monday 22nd February
Significant Buyers were active again last week and there has been no Significant Selling marked for 10 days. Almost all price action each day last week took place above the previous day’s poc (red dotted line) which is a good definition of up-trend. The major poc migrated back up to 1094 from 1064 and there has been three days consolidation above that level. All major U.S. Market Charts turned back to positive. Sentiment measures indicate scepticism which, from a contrarian pov, is usually positive for the market.
Obviously last week was very constructive for the Bulls for the reasons given above. As long as price continues to print above the 1094 poc I have to expect higher prices.
Back on Feb 5th I wrote… “price action strongly suggests to me that a major distribution that began in September last year has now completed and a new distribution has begun.” That was incorrect. If a new distribution had begun down then ES would not have traded back up to 1094. It is worth noting that the VAH of that 6month distribution comes in at 1118. A price probe above that level may be seen as opportunity by the Sellers and might well bring a response from them. Acceptance of price (daily value Areas) above that level indicates higher.
