ES review & plan
Yesterday was fairly uneventful and saw consolidation of Friday's move. The gap from Thursday still remains open despite the initial attempt to move higher which brought in sellers at the Globex high. Despite the inside value day, the VPOC shifted lower.
Overnight has seen a move lower, below the important support area shown above. The range is currently 1925.75-1965.00 versus settlement at 1963.00. (Note the 09/10 RTH low above at 1925.00).
The daily Globex chart below shows the composite volume profile and key composite HVN at 1928.75 below the December range low at 1937.00 (back-adjusted).
Expectations for today are either:
1. Adjustment to overnight short inventory initially with an attempt to close the gap from yesterday, which is met by sellers at prior key support and a drive lower through the overnight lows
2. Adjustment top overnight short inventory and a push and hold above key support to test yesterday's VPOC before sellers regain control and balance below yesterday's RTH range.
3. There is little pullback from the overnight sell-off and we see continuation lower searching for longer timeframe buyers to step in.