Yesterday ES opened with a small gap up above the multi day balance, but still within the weekly balance. The hope for bulls was that this was the beginning of a breakout, but that was short lived. ES stayed relatively balanced during the first few periods in the morning before breaking to the downside. I expected it to be tough for ES to fall through the ever growing HVN in the 7590’s. It did take D and E period for it to try to hold the HVN but F period fell through completely and went to the 7570 afternoon pullback level from the prior day. This has been tricky, since dips are eventually bought up pretty aggressively it’s just a question of which level sellers are able to take it to before this happens. Our job is not to guess what level but react to the price action, easier said then done.

Let’s take a look at what to watch out for today and today’s key levels.