posted 9.10a.m. est
from pre-open comment Friday 5th June
>>ES printing back below 941 would be a first indication of weakness<<
from email Friday 5th June
>>Re: the 91 day calendar count off the low – an apology: It does not come in early next week as I wrote, but today. A day or two each side of the count is usually not that important but the fact is – it is today. We have overbought technicals, negative oscillator divergence and a sell-off from the open on a day which is 91 up from low. This may not be a top (it might) but bulls definitely want to see ES printing some time back above 941.<<
Pre-open Monday 8th June
Significant Sellers responded twice last week above 948 (red at top). If price became accepted (time spent) above that level it would be bullish.
Last week I marked two instances of Significant Selling and one of Significant Buying. The last imbalance was Selling (red on Friday) and that means I won’t be considering new longs until Buyers (green) reappear.
However, the Selling so far has been Ineffective (Friday’s Value Area was overlapping/higher). Since the March low any Significant Selling has been followed almost immediately by a response from the Significant Buyers. If we see that pattern change it would be an indication that control may be shifting.
Bears would want to see Effective Selling below 941 (current controlling price) – and things would start to look very negative if we saw Effective Selling below 872 (major controlling price).
Bulls need to see ES printing back above 941. If that happens I could see development to 970.
