ES Review & Plan

Yesterday opened below Monday's low and attempted to push into it's range but failed a tick below Monday's settlement. We then saw liquidation of weak longs and an attempt to fill the gap left after Friday's BoJ QE surprise by shorts. Sellers weren't strong enough to fill the gap completely, and responsive buyers stepped in. Once it had balanced around 1997-2000, shorts were forced to cover after a push back through 2000 and back to the value area of the past couple of days. A good low was left yesterday with a 7 tick buying tail. There is still a poor high at 2019.25. Volume has not been strong on the rally, however. 

The profile shows two distributions, above and below 2000.50. This is a short term bull/bear zone. 1994.25 and 1988.75 remain downside references below that level initially. A move back up through the value area this week would target the poor high left on Monday and further upside.

Upside measured moves from fib wave extensions are: 2024.75, 2042.50, 2065.25 & 2069.25

Ahead of Friday's employment report, today is the ADP employment report at 07:15 cst and the ISM non-manufacting index at 09:00 cst. The dollar index has continued to make new highs overnight following the mid term election results.