Pre-open Wednesday 15th July
There wasn’t much follow through on Tuesday. The Value Area was higher and narrower on less volume and that’s not usually good for continuation higher, at least not immediately. On the hourly chart the momentum oscillators are overbought and strength early in the week isn’t always to be trusted.
However, respecting the fact that the last imbalance was Buying (green) I can’t initiate new shorts until Sellers re-emerge although I think there’s a good possibility they will.
Overnight price has consolidated above 907.5 (the important level here) and would put ES in a strong price location if that level holds.
Bulls would look for ES to remain above 907.5 and build value.
Bears would hope for a response from the Sellers (maybe above 915) and then ES quickly back below 907.5.
My best guess is the latter.
