from pre-open comment Thursday 2nd April
>>Buyers still in control. Pre open, ES has traded higher, probing the major resistance level at 830 as we saw a week ago. If 830 is accepted rather than rejected this time then I would expect development to the 850 area but 830 may prove a difficult level to overcome.<<
Pre-open Friday 3rd April
Thursday’s VA was above 830, which is now the major controlling price for this contract. That is bullish if 830 holds. I’m also seeing strong price location now on the weekly charts with indices printing above their 1/2H levels and overcoming resistance. Breadth is also supportive. With buyers in control of the dayframe this looks like continuation higher.
Where can it go wrong? I’m targeting 850 in price and early next week there is a major time pivot. The 6th/7th April is a possible turn date; 30 days up from low which is a normal bear major correction, 90 days from the Jan high and 1.5 years from the Oct07 top. The bearish scenario is weakness out of that time pivot and then value building lower than 830.
830 is the key. Strength is indicated if price stays above that level. Buyers are still in control and have been since March 12th.
