Pre-open Friday 6th November
On Thursday ES spent very little time after the open below 1052.5. Sellers did not respond early and as I suggested yesterday (see above) that would likely mean that Buyers would be marked, which they were. However this was Ineffective Buying because the Value Area, although higher, was narrower and generated less volume. The rally was halted by the 1063/64 poc. Today, ES probed up above the 1063/64 poc just before the employment numbers were announced. Since then ES has printed down to 1053.5 just above the 1052.50 level discussed yesterday.
Look how similar Thursday’s profile is to the previous Thursday. Both had a green-at-top probe up into the 1063/64 poc and once again I will say that 4 out of 5 green-at-top highs get tested the following day – but 1063/64 is an obvious, proven resistance.
Longframe: I’ll go with Buying above 1063/64 or Selling below 1038.50
