ES Recap & Preparation
Yesterday saw an upside breakout trend day which forced shorts to cover who had played the breakout to the downside below 1918.25. The pit session gapped open 10 handles and only pulled back 2 before beginning a steady move higher, one timeframing for the first six 30 min periods. There was an hour of slight liquidation which saw buyers jump back in at 1922.50 and proceed to drive prices to a high of 1939.75 after hours.
The pullback from the all time high to recent low swing is also close to the 61.8% fib retracement at 1936.50 (RTH) & 1937.75 (globex).
Volume was 2.2m contracts on a 54 point range day, which isn't impressive. AAPL was the heavyweight driver of the market after impressive earnings.
Expectations for today are for attempted balance. Short term trends are higher and value is shifting higher. It still remains a low confidence market though susceptible to breaks driven by headlines. It's unlikely the gap below remains untested for long but if prices hold in the upper volume distribution from yesterday we could see more upside towards the 1948.50 CLVN, then 1956.50-1968.75 CHVA.
ES Recap & Preparation
Yesterday saw the market open within the prior day's range and push higher leaving a buying tail. Shorts appeared to be under pressure as there was little pullback and it remained balanced at the higher end of the range for most of the day until a further push higher forced shorts to cover and squeezed up to settle at 1900.
Pit Session
Direction for today really depends on how the market reacts around some key levels. Overnight has been strong but cumulative delta is fairly neutral. Apple earnings beat forecasts but China released the weakest GDP growth in 5 years.
Levels of Interest:
1918.25 Resistance from prior breakout
1913.00 50% retracement on daily pit session hours
1909.00 CLVN
1906.00 Oct 13th high
1900.00 prior settle
1898.75 top of yesterday's single prints
1897.00 prior HVN
1888.50 prior IBH
1888.25 prior POC
1887.00 prior VPOC
1879.00 top of yesterday's buying tail
1875.25 prior open
1874.50 prior low
1870.00 Oct 19th low