posted 3.30a.m. est
from pre-open comments Tuesday 14th April
>>We await a response from the sellers – Monday was the fifteenth consecutive trading day since I marked significant selling.
Significant Buyers were active again on Monday generating a higher/overlapping value area. I have marked aggressive buying (green at top) the last three trading days which is unusual. It would be rare to see buyers active for four consecutive days, so maybe they will rest today (Tuesday) and give another opportunity to the sellers to show what they can do.<<
Pre-open Wednesday 15th April
from comment pre-open Wednesday 8th April
>>An important point to note is that since the March low Buyers have responded every time they were offered price below 2daysVA (that’s the value area of the previous two days price action combined).<<
On Tuesday Buyers were offered price below 2daysVA and this time there was no response. Also on Tuesday, as expected, buyers rested and sellers were forced to respond. Significant selling was marked, generating a lower/overlapping but narrower value area with more volume (previous seven days had seen decreasing total ES volume).
I made the comment after the 26th March and 3rd April that it is unusual to see agressive buying on the high day of a rally (green at top). Both these potential high days were subsequently exceeded. Monday was a similar day. It’s unusual but not unknown. The fact is there is usually responsive (red at top) selling first.
For now Tuesday’s price action looks like nothing more than a pull back to the major poc at 830. Before we assume Sellers have taken control of the dayframe we need to see effective selling below 830.
