Pre-open Tuesday 10th November
Buyers were active (green-at-top) on Monday and the Value Area was higher and wider (taller) than Friday’s which indicates this was Effective Buying. As you know 80% of the time a green-at-top high gets tested the following day BUT although it’s still likely to happen I won’t rely on it because gaps mess up any testing I have ever done. I really don’t like gaps
I am not interested in the short side at the moment because I never fade the last imbalance and that is obviously Buying (green) AND ES is printing comfortably above the 1063/64 poc. ES could fill the gap and still remain above that level.
Effective Buying above 1063/64 indicates continuation higher but I hate that gap.
The ISEE (Equity only) index hit 231 at the close yesterday. That indicates a lot of public call buyers on a Monday who may be required to suffer a little before the market can move higher. That’s only the sixth time since March that the index registered above 230 (the previous five occurences were just before a sell off).
A test of 1100 would test the October high and may bring out the Responsive Sellers but if ES can consolidate above the 1063/64 poc then even with the Small Caps and the Financials lagging, ES would be in a strong position.
