Overview + Levels

Checking the Morning Call (per my pre-market routine) I was delighted to find the opening sentence read a bit differently today: the ES is actually down a bit, keeping pace with the European equities (down ~1.5%).  This translates to the possibility for better opportunities today, as we aren't on the usual pin-it-at-the-life-high-forever-and-always tack.

Daily chart & recent profiles (US sessions)

Market is currently in between two places where an opportunity can arise: a bad high (which is likely to draw the market back to it) at 54, and a series of excess lows clearly seen on the daily chart.  Since shorting this market is still a risky proposition absent strong confirmation, I'll be looking for a test of 31 or possibly 27 (Excess lows A & B), with failure & reversal, as the pull of the bad life high becoming the focus in the immediate future at that point.

However, it also possible the sellers dominate today, since Europe was down significantly.  Currently the market is set to open at a downgap, monitoring what occurs in the early periods of today's auction will give valuable information on what is likely to occur in the later periods, with yesterday's low at 38 being the focus.   A possible resistance area is is 48.5, a selling tail on yesterday's profile, the globex high, and therefore a reversal candidate.  A strong downtrend could go all the way to to 19.5 area, where an unrepaired anomaly sits. Either way, with volume being up and price being down, good opportunity is likely to show itself.