posted 9.28 a.m. est
Pre-open Wednesday 2nd September
Tuesday was the first Effective Selling day since the July low. Value Area was lower and wider on much higher volume than we’ve seen recently. Tuesday’s total ES volume was 3,249,260 compared to a 10day ma of volume of 1,994,613. (Nyse saw nearly five times more declining stocks than advancing stocks and seventeen times more declining volume than advancing volume.)
There was an early probe up just above the previous poc at 1026.5 and Responsive Sellers stepped in (red at top) to auction ES swiftly lower. Significant Sellers were active later in the day as well (red at bottom), ES found support just above 994.5 as I suggested pre-open yesterday.
Putting to one side thoughts about time cycles and supportive breadth etc it’s my opinion that a day like Tuesday needs to be respected. I am assuming that Sellers are taking control of the dayframe here and I will not be looking at the long side until I see Effective Buying activity above 994.5
And, most importantly, consolidation below 994.5 would suggest more downside and that a top of some significance was in place.
