ES review & plan

Yesterday saw a sharp move away from the balance area of the prior 2 days. The early rally rejected the prior support area from 09/14 and the 1937.00 December low. A b-shaped profile formed below the overnight low which is a sign of long liquidation. Volume was 1.98m contracts and 3.8bn shares traded on NYSE, above average.

Overnight has seen an extension of the move lower, with a range of 1910.50-1941.75 versus settlement at 1932.00. I'm using 1937.00 as a bull/bear level today which represents the low of the range from December. 1928.75 is a major HVN on the composite volume profile and is the next major level either side will want to control above/below.

Expectations for today are either:

1.  Open within yesterday's RTH range and attempt to fill the gap above and sellers step in to regain control and push back down to the low of yesterday's value.

2.  Open within yesterday's range and fail to take out yesterday's RTH high and sellers dominate pushing for the overnight low.

3.  Open above yesterday's RTH range within the gap and there's a short covering rally to test the naked VPOC from Monday before sellers step in