Pre-open Thursday 28th January
On Wednesday there was a p.m. rally that took ES as high as the minor poc at 1096.5 (red dashed line) but overnight that resistance has been exceeded. Pre-open, support has been found just above the major poc at 1094. If ES can hold above this level early in the session then new highs for the week would be expected and maybe a test of the obvious resistance at 1108. However, even in the dayframe, I’m not interested in new longs until I have marked Effective Buying above that level.
Value Areas have been lower or overlapping for six days and the 14dayRSI has reached its most oversold level since March so a bounce would be normal but highly risky to trade.
Effective Selling marked below 1094 would confirm a down trend in the longframe.
ST sentiment indicators: My version of the Rydex Assets ratio rose slightly to 2.24 which is still high and from a contrarian pov is not yet a bullish indication.
