Pre-open Friday 30th October
Wednesday’s red-at-bottom low was not tested during Thursday’s day session, (4 out of 5 get tested the following day). Also it is very rare to see a day of Effective Buying immediately following a day of Effective Selling like this (this pattern will sometimes occur Friday to Monday but very rarely during the same week).
ES found support on Wednesday’s poc (dotted) early in the session and moved higher until it found resistance at the 1063/64 poc. See Tuesday’s pre-open comment (bottom left).
I will still be cautious about the long side here unless ES manages to print some time back above that resistance. The more time spent below 1063/64 the more likely we see a new low. I’m also aware that the odds are in favour of a test of Thursday’s green-at-top high.
I see it like this: consolidation above 1063/64 indicates higher; a break of Wednesday’s poc at 1050 indicates lower.
