posted 9.28 a.m. est
Pre-open Monday 10th May
I’m not covering Sentiment or Supporting charts here – see webcast this a.m. Market action pre-open today has made that a little redundant. Let’s concentrate on price and the important levels.
Longframe: All major Market Timing charts are now red (negative) – not surprisingly; and no longer support higher prices.
Dayframe: Pre-open ES has rallied on news all the way back to the 3month poc at 1161.50 (see pre-open comment Friday, above). The high pre-open today is 1162, see dotted red line for path of pre-open price action. If ES can consolidate above 1161.50 it would be an indication of short-term strength.
Volatility and large news related swings are making this difficult to say the least but applying my own rules strictly I have to say that with the Market Timing system now negative and the last dayframe imbalance being Selling (red) I have to favour the short side. But if ES can print some time above 1161.50 the implied strength would put all of that in doubt.
Also notice that ES spent very little time (a few minutes) on Thursday or Friday below the most important level which is 1094. In the longer term consolidation below 1094 would put ES in a very weak position and will most likely indicate a major down trend had begun.
