posted 9.08 a.m. est
Pre-open Wednesday 29th July
Pre-open Tuesday I said that the First Level S/R had moved to 978 (dashed red line) and if ES opened below that price it could provide resistance. You can see from the chart that this level was indeed resistance yesterday. I use this as a measure of buying/selling strength and obviously on Tuesday there was not enough Buying strength to overcome that level. That’s the first time since the July low that the First Level S/R has been resistance rather than support. That is another clue that there is a slowing of the up auction. Also, Tuesday was the first daily low below the previous day’s low for twelve days.
I cannot consider the short side until Effective Selling is marked (hasn’t been for fifteen days now) and Significant Buyers were marked again on Tuesday, responding below Monday’s low. First Level S/R moves to 973 for Wednesday. As I said yesterday with Buyers still in control I have to expect higher but no new longs if 973 proves a problem during today’s session.
