ES review & plan
Yesterday's overnight market traded below Tuesday's range and for a short while it looked as if we may be about to see a long awaited liquidation break. However, buyers stepped up and supported prices at the recent high volume area around 2028, which is where the market opened and only moved a tick lower. An overnight inventory correction rally ensued. Value initially looked to be overlapping lower but shifted back up to be balanced with the prior day. As more time and volume was spent in the 2034-36 area it looked as if a push was about to take out the prior day's poor high and all time globex high, but a liquidation break prevented that from happening. An attempt to do this late in the day left another poor high. This leaves two back to back poor highs to carry forward and an all time high only reached during the overnight market so far.
Volume was 1.08m contracts and 3.27bn shares traded on NYSE.
The overnight range so far as at 03:00 cst is 2033.50-2043.00, lifted by Asian markets and specifically by talk of possible stimulus measures to banks in China and a potential snap election in Japan. There are jobless claims at 07:30 cst and JOLTS at 09:00 cst.
The most likely scenarios I see today are:
1. A test of support around yesterday's POC/VPOC and a move to all time highs for the pit session with continued liquidation breaks during the day.
2. Balance within the last 3 days range and around the most volume at price at 2033.25
3. Open in yesterday's range and begin to accept below the 2029.50 high volume node from yesterday and target the poor low on Monday at 2025.75, then the 2020.50 low.