ES review & plan

Regular Trading Hours

After Friday's open the market rejected the prior day's range after the gap fill, setting up for the move lower. Although the direction was down and we did see a move to the 2091.75-93.75 zone, there were some big intra-day reversals making it challenging from the short side until the last hour of trade.

This has good potential for marking an intermediate low given the nature of the move on year end expiry, setting up for an attempt by bulls to push for all time highs again. This is just a gut feeling and not a view I'm going to hold on to if we hold below Friday's value area for long. There's potential for shorts to be squeezed aggressively once back inside Thursday's range. There's strong resistance around the 2038 area as the first major defense area for shorts, where the breakdown occurred on Thursday.

The daily chart shows the move back down towards the bottom of the range after the rejection of the composite VPOC. If Friday's low is taken out we have potential for a heavy liquidation move down to the next area of high volume at 1952 then 1921, in my view.

Globex Daily

The current range with the custom volume profile (left) shows the market remains below the VAL and longer term buyers may see a good value opportunity.

Globex 240 min

The zones remain the same for today and I'm trying not to have an bias and keep a flexible mind to trade from either side using the zones as potential targets/reaction areas. 

Globex 30 min