posted 9.29 EST
from pre-open analysis 02-26
>>…for the last two days there’s been no significant selling. This gives buyers a chance to show what they can do. Price action on Tuesday and Wednesday generated higher although overlapping value areas, with each value area being towards the bottom of the day’s range. If the buyers are going to regain control we need to see more of an effective response from them.
Although the low on Monday fits the bill in price and time for a bottom of some significance the price action since then looks like typical corrective activity . If that’s the case the resting Sellers will respond a little higher than Wednesday’s high and auction price quickly lower. I’m looking for that and if we don’t see it then I’d consider it a clue that control may be shifting.<<
We didn’t quite see the test of Wednesday’s high that I expected before sellers responded to auction the market swiftly lower. Price action since Monday’s low had looked like typical corrective activity.
It’s also rare for a low to be put in on a day of aggressive selling like Monday. This written just before open on Friday and ES trading 735.5 at a new low. I’m seeing development down to the 715 area from here.
In the bigger picture there’s little to encourage. Breadth is poor and major charts are trading below their half-high levels which puts them in an extremely weak position.
