Pre-open Wednesday 17th February
Tuesday’s high was 1094 – right at the poc resistance but it came late in the day and there has been no response from the Sellers. Aggressive Buying (green-at-top) was marked although this was not Effective Buying; the Value Area was higher but narrower and the volume was the lowest for 21 days.
You know the stats, green-at-top highs are tested during the following session about 80% of the time – and an hour before open ES prints at 1098 so there is a strong possibility it will open above that level.
Is there enough buying strength to hold ES above that doubly-important level? (1094 is poc and 1/2R off the Jan high). If ES can consolidate above 1094 then this is probably more than just a relief rally to damage all those bears that emerged recently (see eBook). Bears would want to see a quick rejection of price above that level – because if ES prints enough time at 1094 then the major poc could migrate back up from 1064 and that is nearly always bullish.
ST sentiment: On Tuesday my version of the Rydex Assets ratio was up slightly from 1.27 to 1.33
