ES Recap & Preparation

Yesterday saw an upside breakout trend day which forced shorts to cover who had played the breakout to the downside below 1918.25. The pit session gapped open 10 handles and only pulled back 2 before beginning a steady move higher, one timeframing for the first six 30 min periods. There was an hour of slight liquidation which saw buyers jump back in at 1922.50 and proceed to drive prices to a high of 1939.75 after hours.

The pullback from the all time high to recent low swing is also close to the 61.8% fib retracement at 1936.50 (RTH) & 1937.75 (globex).

Volume was 2.2m contracts on a 54 point range day, which isn't impressive. AAPL was the heavyweight driver of the market after impressive earnings.

Expectations for today are for attempted balance. Short term trends are higher and value is shifting higher. It still remains a low confidence market though susceptible to breaks driven by headlines. It's unlikely the gap below remains untested for long but if prices hold in the upper volume distribution from yesterday we could see more upside towards the 1948.50 CLVN, then 1956.50-1968.75 CHVA.