ES review & plan

The weak sentiment going into Friday saw a large move lower leaving a gap from Thursday. There was consolidation for most of the morning trade following the big move and the afternoon move lower was quickly rejected at the swing low test from April 7th. There was a late short covering move back to the POC as the market had got too short in the day timeframe. Volume was 1.8m contracts and 3.6bn shares on NYSE. 

For longs to regain control there will need to be acceptance above the morning pullback high from Friday (2078.00)or there could be rotation lower to test the day's range low. 

Overnight the market has been higher following a cut in the Chinese reserve requirment ratio just a couple of days after the Chinese regulators tightened up rules on margin trading. 

The range is currently 2078.50-2089.75. The pullback low at 2081.50 is an overnight support level to watch.

There are no major US data figures due today.

The most likely scenarios today I'm expecting are:

1. Break overnight low and find buyers around Friday's settlement and rally to close the gap.

2. Hold above the overnight pullback low and rally to close the gap

3. Range trade between Friday's VAL and High.

4. Test overnight pullback low and rally through gap towards Thursday's POC and composite HVN at 2098.25