Review & Plan - Tuesday
Yesterday's aggressive response by buyers to push through the recent range value area was done on surprisingly low volume - just 1.3m ES traded and 3.3bn shares on NYSE. The price action was undeniably very bullish, but the lack of volume overall and very long tail of single prints is an important take away. The poor high and settle near the close is a sign the upside auction isn't finished, which has been seen overnight.
A look below at the order flow in the first 30 mins of trade shows the strong delta plus size bid absorption ahead of the push through the recent range VPOC at 2075.50. Shorts continued to get squeezed which helps the momentum as they are stopped out.
The long term auction on the S&P still hasn't shown any indication of being complete to the upside. The all time high doesn't show any signs of a blow-off top or any significant excess, nor have we got to the stage of the herd all being long equities, far from it. I'm not one for market predictions as they cloud the mind for day trading, but there is a scenario the market could be trading at 2200 by next week if the big money steps up to squeeze the retail shorts out of the market and panic into buying.
Overnight so far the range is 2084.75-2098.50, continuing higher above yesterday's range. The back adjusted all time high is at 2100.00 which looks to have a very high probability of being tested as next major resistance. This level also carries the highest call option open interest for the June series.
Zones of interest for today: