Pre-open Wednesday 4th November
Tuesday was an inside day with a narrower, overlapping Value Area. The day session high was 1043, just below the top of the previous 2days summated Value Area which I suggested might limit the upside.
During this consolidation day the 10dy poc fell to 1038.50. 1063/64 remains the most important reference level but 1038.50 is now First Level S/R. Further weakness be expected if ES prints back below that level.
I have not marked Significant Buying or Selling for two days now. As there hasn’t been a strong enough response from the Buyers to mark I have to assume that Sellers are still in control but resting. That view would change if ES is able to auction back above 1064 or if Significant Buying is marked.
1051 is now the top of 5days summated Value Area. I was going to suggest that a probe above that level might well attract a Response from the Sellers but as I write (30 minutes pre-open) ES has already printed 1051.50. If Sellers do not respond here as anticipated and ES is able to print some value above 1051 then it would be a first sign of strength.
