from pre-open analysis Wednesday 25th March
>>I’m thinking we’ll see a test of Monday’s high but I’d want to see ES hold above 801 or test below it and recover quickly. Building value below 801 would make that high test less likely.<<
Monday’s high got tested very early in the day and sellers responded above 823. ES tested below 801 (the important level) in the p.m. – but below 790 the buyers also responded quickly and auctioned price sharply back up. This generated a value area which overlapped Tuesday’s and left no longer term net buying or selling imbalance that I would call significant. NYSE internals were pretty healthy with advancing issues more than double the number of declining issues.
Sellers may well respond again at 830 or just above should we reach that level this week. If that is going to happen I would expect Tuesday’s poc around 810 to limit the downside beforehand. Buyers are still in control of the dayframe.
