Pre-open Wednesday 1st July
926.25 was the early high on Tuesday and brought a response from the Significant Sellers (red at top). After a sharp decline ES found support just above 907.5 which has been the dayframe controlling price for a while now.
Value Area was lower and wider so this is Effective Selling.
When Reponsive Selling is marked (red at top) the high of that day will be tested the following day less than 20% of the time – but Pre-open ES has already retraced more than 85% of yesterday’s decline. If Sellers are offered price close to yesterday’s high after the open we should expect a further response.
The most recent imbalance is now Selling (red) so that eliminates the long side for me.
