ES review & plan

Poor consumer confidence saw a short lived break lower to the prior day's VPOC at 2102.75. Prices quickly reversed and took out the prior high. The morning high in the ES at 2014.25 coincided with the 161.8% extended retracement of the Friday high-Monday Low, and then the break lower reversed off the opening price at 2106.25. With volumes still low(only 3.2bn shares on NYSE), short term/day traders appeared to remain in control. Once the developing POC was trading above the prior all time high, longs pressed shorts to another new high. 

Yields dropped across the curve following Yellen's testimony to the Senate Banking Committee. Today sees her testimony to the House Financial Services Committee at 9am ct, at the same time new home sales is released.

Bulls remain in control still- a bit like the captain of the Titanic was, but we're not quite sure where we are between Southampton and the iceberg!

Overnight the flash PMI manufacturing index from China was slightly better than forecast. Domestic demand in China still looks sluggish and external demand remains uncertain - iceberg, ahoy!! (one of the many lying in wait en route).

The current bullish bias would weaken if we begin to trade back under yesterday's breakout of 2108.75, and we will likely see liquidation under 2106.25. This would target the 2100, 2096 & 2093.25 levels.

Overnight has been slow and low volume so far between 2110.00-2114.25. There's a continuation pattern forming, so we could be looking for new highs again. I'm not looking for shorts unless we break below yesterday's open and fail on a re-test of it from underneath.