posted 09.32 EST
from pre-open analysis 0305
>>We have seen no significant buying now (green) for six days. I have to assume this market wants to go lower. Risk is way too high for me to attempt longs. With price location the way it is there is still a high risk of another sell-off.
The more time ES spends below 705 the greater the chance of a new low for the week. If we open below 705 , an early rejected probe above that level could bring out the sellers again.<<
ES didn’t quite manage an upside probe above 705 but after an early rejection at 703.5 the first hour was spent just below 705. After that we saw a new low for the week as anticipated.
There’s been no significant buying now for seven days – so once again I have no plans to look for a long.
694 is the High of Yesterday’s Value Area – if we see a probe above that it could attract a selling response and that could set up a weak end to the week as so often happens in a bear trend.
However if price meets acceptance above HYVA then 700 is the obvious resistance as the week’s halfway point. Certainly wouldn’t look to short if ES prints above that level.
