Pre-open Tuesday 27th October
Monday’s Value Area was overlapping/lower and wider. Volume was slightly less than Friday but above average. The early rally was halted at exactly the First Level Support/Resistance of 1088.5 which was the key level I mentioned all last week.
Applying my strict rules I cannot mark selling imbalances although relative intraday volume indicates Significant Sellers were active (see below).
Pre-open last Thursday I said >>There is an important test for the Sellers at the 1063 poc if/when ES reaches that level.<<
That’s where we are now. Dayframe and Longframe focus should be on price action relative to the poc at 1063. Consolidation below that level puts the odds in favour of further weakness. Effective Selling below that level would conform Sellers in control. Currently though ES has found support here.
Note: It is often helpful to look at the volume for each half hour period and compare it to a 20day average of the volume during that same period. On Friday during C and D periods* there was very high relative volume and again on Monday during E and F periods. All of these were down bars. Although the Significant Sellers did not create obvious imbalances on Friday or Monday and were therefor not marked there was clearly institutional activity (high relative volume) during the day that needs to be noted.
*Market Profile designates letters to each 30minute bar from the open, e.g. 9.30 to 10.00 is period A etc.
