Monday gapped down and the day session generated a wider Value Area than Friday with less volume. This is the weakest price location seen on the charts for many years with all major charts (now including DIA and QQQQ) printing below their 1/2H levels. Coupled with a lack of “capitulation sentiment” (see cot data last week) risk is extremely high.
I’m wouldn’t be foolhardy/brave enough even as a daytrader to attempt a long here but In the very short term (today) ES needs to print/hold above 713 before even a relief rally could be anticipated. More information needed. There’s not enough data since the gap open yesterday for me to make a judgement.
