Pre-open Monday 13th September
Longframe: Long positions are still eliminated for me. The ChartProfit Market Timing System stayed negative for the nineteenth consecutive week.
Pre-open ES is printing well above 1107 (1/2R off the April high) which now becomes First Level Support rather than resistance.
Presenting a distilled, and hopefully helpful, opinion pre-open each day is difficult enough but currently the difficulty is compounded by the fact that 1) ES prints very close to its Major poc and 2) my mecahnical systems are in conflict with my reading of the chart. Currently my mechanical systems are telling me that Long positions and trades are eliminated but observation of the chart tells me that if ES is printing time above 1107 it is in a strong position for continuation higher. I’m thinking this:
If ES remains above 1107 and I mark a Buying (green) imbalance – that’s a “go with” and I will expect higher prices. My Rules would allow Long trades at that point. This is supported by the latest Rydex data which indicates that the “not-so-smart-money” are very sceptical of this rally which is usually bullish (contrarian).
If ES cannot hold above 1107 and breaks back below the more important support at 1094 (major poc) then ES will be in a weak position and I’ll look to short.
Sentiment and Supporting Charts analysis: see webcast.
