posted 5.41a.m. EST
from pre-open analysis 0310
>>In my judgement the sellers are resting, forcing a response from the buyers. As significant buying activity has not yet been seen I would still judge the 705/707 area as too far above recent value to not attract sellers. If significant sellers do not emerge at that level, or below, it would be the first clue that control may be shifting albeit in the near term. Value building above 670 would be the second clue.<<
Tuesday saw the best performance from the buyers for more than a month. Buyers were active generating a higher, slightly wider value area and more volume than Monday. Another plus was the fact that the expected resistance zone at 705-707 became support and ES spent the p.m. consolidating above that level.
Most of the major charts closed above three days worth of highs and that would normally mean continuation higher in the near term especially with daily oscillators moving higher from oversold.
If the market is going to move higher in the minor timeframe then the zone 705-707 will most likely hold. In the major timeframe this is probably just a relief rally to shake up all the bears we saw in the opinion polls last week.
