Wednesday’s selling began at the exact low from the prior day.
At the time of this posting, the market had already traded back above Wednesday’s range in the overnight session and price is expected to open back within the prior three day balance. Potential destinations are the upper distribution from the 8/14 profile and the poor matching highs from 8/13 and 8/14.
Each distribution in a daily market profile chart could be looked as a separate day, or balance area. Price can look above or below balance and either continue to find acceptance at higher or lower prices, look above/below a balance and fail (returning back into the balance and possibly target the opposite end), or remain in balance.
With lower summertime trading volume the better odds on Tuesday could probably see price remain balanced within the current two day range or with a slight extension to either side, barring any surprising external news events.
Price acceptance below the lower distribution could target at least some of the remaining poor structure from the 8/2 profile chart. Acceptance back above the poor high could target the unfilled gap from 8/9.
(the above, post and all posts on es-traders.com, is an interpretation of market generated information using the Market Profile, and the information contained within is to be used for informational purposes only and not to be construed as investment or trading advice. DO NOT BASE ANY INVESTMENT DECISION UPON ANY MATERIALS FOUND ON THIS WEBSITE. We are not registered as a securities broker-dealer or an investment adviser either with the U.S. Securities and Exchange Commission (the “SEC”) or with any state securities regulatory authority. We are neither licensed nor qualified to provide investment advice. Please read our disclaimer)
Youll never look at the markets the same way again