ES review & plan

Yesterday's overnight range had a sharp move lower to the top of the single prints from last Friday and then rallied rapidly higher into the open. Opening within the prior range there was a brief test higher to the prior value area high followed by an auction lower into the weak structure below and failed to follow through underneath Monday's low. The failure to accept below there caused a rapid short covering rally and then eventually broke the overnight high building volume and value higher on the day. However, as is the case currently, volume overall is low at 1.1m contracts and 3.3bn shares on NYSE.

The all time high looks highly probably to get taken out with the several weak highs that stand in the way. There are still areas below which have not been repaired or tested, but the bulls have the upper hand currently and is the path of least resistance it appears.

Overnight the range is 2087.50-2100.75 versus settlement at 2100.25. Today's economic figures are here

I'm expecting a test lower but responsive buying to step in to take out the weak highs and target the contract high. Acceptance below 2087.00, however, could see a larger liquidation back through last Friday's range.