Another quiet overnight session, forming the familiar bell-curve within yesterday’s fat value area. This tells me there haven’t been any significant developments overnight.
The ten handles swing lower seen during the ES afternoon suggests emotions are building up in this tape, but hardly suggests complacency. When price knifed lower to the scene of the early breakout, it was met as a huge buying opportunity. The low volume node left behind at 1648.75-1648.50 is an interesting byproduct of that swift rejection. Should the bulls not defend this level in the same manner on a retest, I’ll take it as a cue that sentiment has shifted.
Early on, perhaps even premarket, I’ll be looking for a test of the 1648.50 level mentioned above.
