posted 8.10a.m. est
from pre-open comment Thursday 28th May
>>…. Tuesday’s Buying was Effective (higher, wider value area and more volume) and Wednesday’s Selling was ineffective (overlapping value area and less volume). For that reason I would expect the Buyers to respond again and auction ES higher.
Difficult to call but:
Stats suggest Wednesday’s day session low at 890.5 will be tested.
I don’t like to fade the last imbalance (Selling) but have a hunch the Buyers will win out in the short term and we’ll see higher prices.
I’m staying out until either ES consolidates above 911.5 in which case I’d be looking for break out to a new high OR I see Effective Selling below 872 in which case I’d be looking to short.<<
Pre-open Friday 29th May
Buyers did respond after testing Wednesday’s low as expected.
ES may find the 908 level attractive (time spent). Overcoming the First Level S/R at 911.5 would be a positive for Bulls and consolidation above that level would be bullish. I’m not looking at shorts until I see Effective Selling below 872.
Note:
In the webcasts I’ve often talked about Weekly Structure. For example, in an uptrend you tend to see relative weakness at the start of the week and strength at the end. Vice-versa in a downtrend.
One sure sign that this rally is over is when we see a Friday closing below the Monday to Wednesday range and below the previous week’s low. We haven’t see a week ending like that since the rally started.
