Tuesday Prep

The charts above are the regular trading hours (RTH) of the market & volume profile (left) and 1 min with NYSE TICK & Advances/Declines with vwap (right).

The profile shows another spike of single prints once the prior day high was broken. This leaves several days with single prints recently which signal fast, stop run activity. I’d expect to see these revisited at some point. The upper zone which yesterday’s high pushed into was from a breakdown area on Dec 18th.

The 1 min chart shows strong momentum in the TICK early on and strong market breadth in the A/D line. When the price was close to the prior settlement in the first hour, the A/D had climbed to about 1200 with positive TICK momentum, which was a good sign the rally had legs. A/D isn’t always this useful but because the number is calculated based on the changes from the previous close, this was potentially significant i.e the net 1200 advancers showed the broad market was strong but price in ES hadn’t caught up as it was still at the prior settlement level. Once the high was in, there was a shift in TICK momentum and move back to vwap.

Overnight has continued higher, with the range 2549.25-72.00 vs settle at 2550.50. Using back adjusted data, the low from Feb 6th ‘18 was 2549.00 which is a significant area to hold above/below in my opinion for this rally to continue/fail. Momentum remains in longs favour for now, and I’d look for pullbacks to get bought within the overnight range but below 2549 I’m looking for price to slip lower quite fast potentially.

Today’s zones of potential support/resistance: