Finally….the 1017.75 to 1016.00 breakout zone I have been tracking was tested Thursday

In the early morning just before the US cash session open, the sellers took control of the order flow to start a price run to the 1017.75 to 1016.00 breakout zone. Price traded through the breakout zone for some minimal range extension to a low in the ES of 1014.75. Now that price had tested near term support, it was all strong program trading into the close fueled by very active equities BUY programs.

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A day in the range with buyers unable to make new highs today

The after hours session last night was uneventful, and after an initial rally out of the US cash session the rest of the trade day was also uneventful. We traded with the current upper range of price with no retest of the current high at 1038.00 level. The ES was still unable to test the breakout zone today of the 1017.75 to 1016.00 levels. With the market trading in a congested range most of the day, I would not at all be surprised to see some range extension tomorrow so here is my call;

80% probability we range extend below the 1016.00 level and 20% we range extend above the 1038.00 level…..this is my call and I will hang my hat on it!

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1038.00 new ES high as the resting SHORT inventory builds!

Even though the S&P500 Emini traded to a new high of 1038.00 early in the cash session, the resting held SHORT inventory position did grow today. Sellers used a lower high rally to the 1035.75 level today to add additional inventory to the resting held SHORT position. After the lower high was formed, the ES traded most of the day grinding lower to a low so far in the after hour session this evening of the 1022.25 level. I will be watching again in tonight’s after hour session for any trading down to the 1017.75 to 1016.00 level to see what any remaining breakout buyers do with their last held minimal LONG inventory.

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S&P500 Emini trades to new highs of 1035.00

The market traded to new highs in the Sunday evening globex session and then continued with strength into Monday’s cash session for a high of day at the 1035.00 level. During the trade day we had an excellent “inventory grab” SHORT trade set up as the ES traded the 1034.50/1034.75 tick levels so take a look….

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One Delta Zone goes neutral and then a second Delta Zone forms at new market highs

The S&P500 Emini started the price rally to new highs today with buyers active just a few hours before the EU markets opened Friday. Thursday the ES rally continued to the 1007.75 level just prior to the close, followed by the initial period of the after hours session controlled by sellers driving price to the 996/997 levels. Buyers enticed by this pullback off Thursday’s 1007.75 high, controlled the order flow in the 996/997 level to initiate a rally. Buying conviction in the ES remained strong through the EU open and all through the US pre-market hours. By the ring of the opening bell we already had the ES ticking price levels within the Delta Zone of resistance 1013.00 to 1016.00 zone of price. This return of price all the way back to the previously formed Delta Zone of resistance put sellers into defensive action, now watch how they handled it….

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