ES review & plan

We gapped lower yesterday at the open and continued to auction lower for longer timeframe buyers. A brief dip below 1900 and the 09/04 low saw selling dry up and a reversal back towards the prior day's VPOC, which saw sellers step in again.

Volume was above average at 2.2m contracts and 4bn shares on NYSE.

Overnight has seen a move higher with the range 1912.75-1951.00 versus settlement at 1918.75. GDP came in slightly higher than expected but this had little reaction to the ES.

The main expectation for today is a short covering profile filling the gap above and testing the naked VPOC from 09/21. It remains to be seen whether today's RTH low stays above yesterday's range, which would be bullish. Acceptance back inside that range could see more of a balanced two-sided day.