posted 7.05 a.m. est
Pre-open Wednesday 20th January
Ninety minutes before open on Tuesday ES tested below 1127 (bottom of cumulative Value Area since the start of the year) and rallied strongly. Buyers are obviously still in control and alert to opportunity – I marked their activity as Significant later in the day (green-at-top). You can see from the chart that most green-at-top highs get tested (I’ve mentioned this many times) so the odds favour a test of Tuesday’s high.
I’ve marked Significant Buying (green) five times in the last eight days with no appearance from the Sellers so the expectation has to be for higher prices. But whether the Buyers could sustain a breakout to new highs at this point, with the sentiment indicators showing so many bulls, remains to be seen. The ISEE (equity only) Index came in at 231 on Tuesday lifting the 10dy ma to 207 which is the highest level since late 2007.
1129 (25 day poc) remains the most important level of support – you can see it tested and rejected three times on this chart.
