ES review & plan

In the aftermath of yesterday's overnight Swiss bombshell, the ES had a fairly volatile day. The open saw a push higher to tag Tuesday's settlement gap and then auctioned aggressively lower. The POC/VPOC finished several points lower than Wednesday and value overlapped lower.

There was heavy selling into the close, and this continued as soon as electronic trade re-opened at 5pm ct.

NYSE composite volume was 4.2 bn shares

The overnight range has pushed down to 1970.25 and back up to 1 tick under settlement. The December low at 1961.50 looks to be the next target. There is a composite LVN at 1964.50 which may see first touch responsive buyers. Closing below the December low would be very negative and could trigger a cascade down to the 1900 area and attempt to fill the RTH gap.

There is an A-B-C corrective pattern with 100% measured move to 1956.75, which coincides with a composite high volume node. 161.8% measured move would be to the bottom of the open gap and a composite low volume node at 1892.25.

If prices accept above yesterday's afternoon pullback high at 1998.25, then a short covering rally is likely. There is a bank holiday on Monday so there may be quite a bit of book squaring going into the weekend.