ES review & plan

There were some heavyweight earnings disappointments driving yesterday's sell-off, notably from CAT and MSFT, down 7 and 9% respectively.

Share volume was only 3.3 bn on the NYSE composite, showing a lack of broad market participation. Futures volume was higher than recent days, with short term traders creating high volatility and closing the RTH gap from the open after pushing down to a composite LVN and 100% extension of the IB range. After hours saw stellar 4th Qtr results from AAPL which is putting a bid in the market again overnight.


The weekly chart shows the current consolidation area within the longer term uptrend. It remains to be seen if this is a top forming or a pause before more upside. The odds favour a move through the poor high that has been formed so far and leave  some excess on the auction. The upside objective remains at 2156.00 on the long term chart, should the market accept above the current highs. 

The 4 hour chart shows in detail the current bracket the market is trading within, which is above the mid point and VPOC. 

The overnight globex trade has hit Monday's VPOC and sold off to just below yesterday's settlement. Short term value has dropped lower for the past 3 days. The composite high volume area between 2026.00-2029.00 is a key bull/bear zone for me today. The FOMC release their statement at 1pm ct.