ES review & plan
The market opened yesterday a tick below the prior VPOC and proceeded to drive higher, pushing through the overnight high, prior high and open gap. Trade was looking tired and the risk of a liquidation break was averted as buyers stepped in at the prior days high on the late morning pullback. The upside target of 2067.00 was reached and a poor high left at 2068.00 before a slight pullback into the close.
Volume was 1.14 m contracts and 3.6 bn shares traded on NYSE.
There is the ADP employment report at 07.15 ct, ISM non-manufacturing at 09:00 ct and the Beige Book at 13:00 ct.
Shorts were squeezed yesterday and the all time high is vulnerable again if volume builds above the 2067.00 mcVPOC. The high has only been made in the overnight session and yet to be matched during regular trading hours, which is unusual and odds favour a revisit at least during RTH. 2071.50-72 is the initial target above 2067.00
The overnight range so far has been only 4.5 points (2063.25-2067.75). If volume builds below the 2063.50 area, 2060.00 was a pullback level yesterday to defend, as well as Monday's high and within a tick of yesterday's value area low. Failure to hold there would target 2057.50 and 2052.75.