posted 7.45a.m. est
from pre-open comments Wednesday 27th May
>>Green at top strongly indicates that Tuesday’s high (911) will be exceeded during Wednesday’s day session.
Through May, ES has been in a clear range between 876 and 928. A consolidation supported on a major poc like this can be a powerful pattern for a fast move up when it breaks out.
First Level S/R is back to 911.5 where it has been many times recently. Consolidation above this level would be another positive.
902.5 is the 1/2Range from the May high. If the market is ready to test that high sometime soon, ES won’t spend much time below that level.<<
Pre-open Thursday 28th May
Tuesday’s high at 911 was exceeded during the day session but only just, ES struggled to overcome Wednesday’s First Level S/R at 911.5. The tug-of-war continues between the Significant Buyers (green) and Sellers (red).
However, 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.
The First Level S/R has been switching between 911.5 and 890 and it was these two levels that capped Wednesday’s price action top and bottom.
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.
