posted 7.30am EST
Friday’s low was below value on various timeframes and there was a strong enough response from the buyers to auction price back above the morning range but the value area was still lower than Thursday’s (although narrower) and there was more volume generated. I’m still short but looking to cut it if any significant buying appears.
ES didn’t quite auction as low as 750 on Friday. Buyers stepped in just above that level. Friday was the first day of the time pivot Feb20th-24th. Because price fell sharply into that window there is a possibility of a turn here but I >>need plenty of evidence that significant buyers are active and taking control before considering the long side<<
If price continues lower beyond Tuesday then I’ll abandon the “surprise” rally idea but right now is a strong price/time for that to happen. 830 is a good level to aim at should a rally develop – that would fill the gaps that occured between Fri13th and Tues17th.
If price holds the minor support at 774 during the day session today then we can expect higher prices in the near term and I’ll go flat. Any price action below 769 would suggest a test of Friday’s low is a possibility today and so is a fast rejection (test-reverse) if that happens.
