Pre-open Thursday 3rd September
The poc at 994.5 developed over seven weeks so it’s significant. It’s the level where most market participants have found a fair price or “value” over that time period.
Over the last four days the Significant Sellers have been active and successfully auctioned price back to value – but that’s all. Whether they can auction price lower than 994.5 remains to be seen but imo Effective Selling below that level would indicate lower prices to come.
Following the big down day on Tuesday there was no follow through selling on Wednesday (ES only managed to probe below the poc) but there was no Significant Response from the Buyers either.
I am always reluctant to fade the last imbalance and as this was a Selling Imbalance (red) I am not looking to initiate new longs until the Buyers make an Effective appearance above 994.5
