posted 9.27 a.m. est
Pre-open Wednesday 3rd February
Significant Buying was marked on Tuesday. This was more strength than I expected to see. There was no Response from the Sellers above 1096 (the high of six days value) and all of Tuesday’s price action was above Monday’s poc – which is a sign of strength. The Value Area was higher and wider and the volume expanded from Monday (although it was less than the 10day average of volume).
We now have an untested green-at-top high and an untested red-at-bottom low. Control of the dayframe is in the balance here and price currently prints back at the 1094 poc fifteen minutes before the open. Other indicators (e.g. the CP Breadth system) suggest the longframe bias is for lower prices but I would now want to see more red on the chart before assuming ES is going back down to test the low. Looking for more directional conviction.
If we do see Tuesday’s high exceeded then the 3 month poc at 1108 comes back into play, note also that 1107 is the 1/2Range from the January high so 1107/08 is now First Level resistance.
ST sentiment indicators: My version of the Rydex Assets ratio was virtually unchanged and the VIX closed at a nine day low which from a contrarian pov is not particularly bullish.
