posted 5.40 a.m. est
Pre-open Wednesday 27th January
Price action was weak on Tuesday with all the a.m. gains from the open given up later in the session. An overlapping Value Area was generated and volume expanded.
Typical weekly structure in a trend down is relative strength early in the week and relative weakness late in the week. If the trend in the longer timeframe is turning down here then any minor rally will be met with selling and there has been very little bounce so far this week considering the market is already short-term oversold. ES 1108 is the obvious level of resistance.
Price has spent most time so far this week at 1096.5, close to the major poc at 1094 and this price level could remain attractive. Time spent below 1094 would greatly increase the odds of a further decline.
Last imbalance is Selling (red) which means I must eliminate the long side of the market until Buyers return.
ST sentiment indicators: My version of the Rydex Assets ratio fell only slightly to 2.22 which is still high. From a contrarian pov this is not yet bullish.
