posted 9.18a.m. est
from comment Friday 17th April
>>We should anticipate a test of yesterday’s high. This will happen 70% of the time on a day following green at top.
We now approach the major ES level of 872. This may be a problem.
(from January”If you are a longer term trader or swing trader I would wait for bulls to auction price back above 872″)
If Buying is strong enough to consolidate price above 872 it puts ES in a strong position for another fast move higher. Should that occur I would expect bullish sentiment to increase rapidly.<<
Pre-open Monday 20th April
Friday did see the anticipated test of Thursday’s high. Friday’s high was 872, the level mentioned (see above) that might be a problem. How much of a problem remains to be seen.
Friday was the third consecutive day of significant buying activity and generated a higher but narrower value area and less volume. The day following three consecutive days of active buyers usually sees buyers resting giving sellers the opportunity to appear (e.g. Tue0414).
For Monday the bottom of 2dayVA is 853 and it is likely that buyers will be offered opportunity below that level today. Throughout this rally Buyers have been consistently buying price offered below 2dayVA and it will be interesting to see if they accept the chance to do so again. 846 is the current controlling price and first level of support to test the Sellers. If Significant Buyers respond at that level or above, a test of Friday’s high should be expected even though it was put in at such an important level – as said before it is unusual to see significant buying (green at top) at the high of a rally.
Until we see Significant Sellers responding it is wise to assume Buyers remain in control of the dayframe.
