ES review & plan
Yesterday saw rejection of the gap above and consolidation below prior support and the 1937 December range low. Volume was average at 1.4m ES contracts and a relatively low 3.19bn shares on NYSE. Yesterday's prominent VPOC at 1927.50 may be an important pivot in early trade if it opens within the range.
The daily chart below shows how trade has rotated around the composite HVN at 1928.75. Dominance above or below this level is crucial for longs/shorts in my view. Shorts will be targeting the composite LVN at 1853.75 and longs will want to push up to the 1958.75 composite HVN and above.
Overnight has ranged so far between 1913.00-1936.25 versus settlement at 1928.50. Wednesday's Globex low at 1910.50 is the next reference below. Durable Goods and Jobless Claims are due at 07.30 ct and New Home Sales at 09.00ct.
Expectations for today are either:
1. We open within yesterday's range but sellers continue to dominate and hold below the composite HVN at 1928.75, taking out Wednesday's Globex low at 1910.50 and pushing for the RTH range low from 09/04 at 1899.00.
2. We continue to balance within the past 2 days Globex range finding 2 sided trade.
3. We gap down and drive lower towards 1900 looking for longer time frame buyers.