ES review & plan
Yesterday saw a decent range and created many opportunities on the back of big falls in China, Greece and Crude. The swings early in the session were quite frantic after such a large gap lower. The lower HVN target of 2036 was hit and the 20th Nov swing low stops were run through 2035.25 to the 2033.25 low. This left an excess low and trade quickly moved back within the initial balance area and one timeframing higher began. Once the initial balance high was broken, the open gap and prior settlement were the next upside objectives, forcing shorts to cover.
The upper distribution closed above Monday's low, which longs will want to hold above.
Volume was 1.8m contracts and 3.9bn shares on NYSE. The Vix index hit 16.6 early in the session, but later drifted lower to finish at 14.9.
The market still remains below the value area created from last week's range, but back within the lower part of the range. If buyers can push back into the value area and through the 2067 vPOC, then new highs are highly likely, especially as the current high shows no excess.
If buyers fail to hold within the range, a move to the top of the single prints in G period and yesterday's initial balance high would be the first targets.
As at 05:00 ct the overnight range is 2055.25-2060.00 on volume of 114k