posted 9.10am EST
from pre-open analysis 02-25
>>I’m assuming ES will see development in the short term up to the 784/785 area. If this is immediately rejected I would short again on a bounce and wait to see if buyers are strong enough to stop me out at 790. Otherwise I’ll be flat and awaiting more information.<<
Standard technical oscillators (daily) are oversold and 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.
