Pre-open Monday 18th May
>>Last week I marked two instances of Significant Selling and one of Significant Buying and that’s the first time there’s been a weekly Selling imbalance since week-ending 6th March…..I’m looking for Effective Selling below the major support at 872 to confirm Sellers in control.<<
Pre-open Tuesday 19th May
As I said in yesterday’s webcast a higher low above a major poc (872) can be a powerful pattern. ES found support just above this level.
I marked Aggressive Buying on Monday (green at top) which confirms that Buyers are still in control. If a shift in control was occurring, the response from the Buyers would have been ineffective. Instead, there was a higher Value Area and Monday closed above three days worth of highs. Last week when the Buyers were very quiet and Sellers active, the week failed to close below the low of the previous week or even the Monday-Wednesday range (which is often a first sign of weakness).
The 1/2Range since the high on 7th May is 902. This halfway point (or just below) could well be support if the Buyers are ready to auction a new high.
If we do see a new high this week I’m sure that sentiment indicators (which are already indicating over-enthusiasm) will move a notch or two higher still.
