Two consecutive Value Areas have been generated entirely above 5948 (6mn Control). This is a sign of strength. If today’s VA is generated above 5994 (1/2R off Dec high) that would be a further positive. If Bulls have regained Control then 5994 will act as Support if tested (equiv. = 592 SPY).

The 3mn Control (now 6mn) migrated lower to 5948 on 9th Jan. Yesterday’s Value Area was generated entirely above that level which is a stronger position. If Bulls are reclaiming control, 5948 will act as Support if tested.

See previous notes on chart. Major Support is at 5635. Today: ES will open RTH above 5862.0 which is v. minor Support. Time back below that level would indicate a retest of yesterday’s low, 5809.

I wrote on 9th Jan that ‘Time below 5948 could precede a test below 5860’, see previous notes on chart. At the start of this week ES is in a weak position and as I wrote on Friday, I’m not considering new longs unless that level is recovered. Next major Support is at 5635.

I wrote yesterday‘ST Control moved slightly lower to 5948. Time below that level could precede a test below 5860′. Next?There’s been development: The 3mn Control migrated lower to 5948 (from 6022.50). Bulls would want to see this level recovered asap. I’m not considering new longs here unless that happens.

ST Control moved slightly lower to 5948. Time below that level could precede a test below 5860. Bulls would want to see 6022.50 exceeded.

On 3rd Jan I wrote ‘I’m looking for Effective Buying (green) marked above 6022.5 (3mn Control) before considering new longs‘. In Tuesday’s session we saw the opposite, i.e. Effective Selling (red) marked below that level and currently ES is printing back close to the minor Control at 5954. Effective Selling (red) marked below 5954, would […]

ES is currently printing above the 6022.50 Control in a stronger position. There was a dip below that Support during yesterday’s session and most time was spent printing close to it. A Value Area generated above 6022.50 would be more convincingly positive price action.

ES opened RTH above the 6022.50 Control which puts it back in a strong position. This increases the odds that a price distribution which began in early November has just completed. If that is the case, and the next distribution is up, 6022.50 will act as Support if tested.

On Thursday, ES generated a second Value Area below 5954. From note 12/31 ‘a Value Area below the 10day Control at 5954 would indicate lower‘. In the ST, this is a weakened position. There was a dip lower yesterday to 5875 but ES may want to test the low of 12/20, i.e. 5866. In any […]