Pre-open Thursday 10th September
On Wednesday ES traded above 1028 (where the Sellers Responded on 1st Sept). The Value Area was higher and wider and generated more volume. Also the last two value areas have been above 1015, the 1/2R from August high.
Longframe analysis (webcast) suggests caution (negative divergences, overheated sentiment) but in the dayframe ES is showing little weakness yet. The bounce from poc support last week, the Aggressive Buying (green at top) on Friday and yesterday’s higher VA with no response from the Sellers all indicate strength in this timeframe. Bears need to wait for Effective Sellers to re-emerge – maybe a test of the August high will bring them out.
First Level S/R is at 1023 for today’s session which is the 2week poc. If the auction up is strong that level should provide support.
