ES review & plan
After opening within the prior day's range, there was a move lower which failed to take out the overnight low by 1 tick. There was accumulation before the trend day higher, through the overnight high and just short of the 08/10 poor high.
There are several areas of thin trade on the profile that could be repaired. The low volume on the NYSE of just 2.86bn shares leads me to think we'll see some re-testing of levels before continuation higher, with the 2088 composite VPOC being the magnet.
Overnight initially moved through yesterday's high on low volume and has pulled back to around yesterday's overnight high. The range is 2093.25-2103.25 versus settlement at 2099.25. US Housing Starts are due at 07.30ct
Zones of interest for today:
Buy/Cover: 93.00-94.75, 88.00-89.50, 81.25-83.25, 73.75-75.75, 67.25-70.00
Sell/Cover: 02.00-04.00, 07.25-09.00, 12.75-14.25
Expectations:
Hypo 1: There's a test lower to the 88.00-89.50 zone before continuation higher to take out the poor high from 08/10 in regular trading hours and target the 07.25-09.00 and 12.75-14.25 zones.
Hypo 2: The move higher happens first before sellers step in and push down towards the 88-89.50 zone
Hypo 3: Sellers try to regain yesterday's move down to the 81.25-83.25 zone