Shorts learned a hard lesson during a bizarre and seemingly co-ordinated move yesterday. The EURUSD spiked up 20 pips seconds before the news and then collapsed – it squeezed late shorts and then collapsed again today.
On the ES I am going to call the 1390 area Cape Canaveral – it was the bottom of the thin part of the profile left behind on the US housing numbers on Thurs 26th. It was the area near where the launch took place yesterday. It is near LVN 1391.25.
Normal operations have resumed today and that level was support for a move to the volume area created on 04/26 at 1396.25 and 1398 VPOC 04/26 and HVN area.
I have left the gray box on my chart as it is still of interest as mentioned from the NFP gap down yesterday.
Intermediate term resistance was at 1403 – I wonder if people will continue to sell this after yesterday.
Yday VPOC is 1402.25 and the closing swing high appears to be around 1405 with a lot of sellers positioned there. A break above will trigger short covering and could be rinse and repeat until 1411.75 again.