ES review & plan
We saw a rejection of the top of the current range before the open and failure to hold the micro bull/bear zone at 1981.75-83.75. This put the gap and the overnight low in the sights as key targets for shorts. The extension lower into the lower gap was unexpected and is a sign of things to come potentially, with the longer time frame shorts dominant. The day's profile leaves several anomalies and single print areas to repair.
Volume was very high in the ES at 4.2m, though just 3.6bn shares traded on NYSE.
Overnight there has been a bounce accompanied with some very erratic algo moves. The range is currently 1933.00-1967.25 versus settlement at 1942.75.
Ideally, I'm looking to short a move back up to the 1965.50-67.25 zone if we see one as I think the continuation lower to at least fill the gap is on for today. However, we may see the 1959.25-60.25 zone bring sellers in first so will be reading order flow and momentum at that zone to potentially join. A hold above the overnight high, which is a breakdown level yesterday morning, would put longs back in control short term.
The major bull/bear remains the December low at 1946.00 (back-adjusted).
Today is rollover though I'm sticking with Sep for now. We've got Jobless Claims and Import & Export Prices at 7.30 ct.
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