No Continuation Lower After Break from Two Day Balance in ES

Market Profile balance trading rules applied on Wednesday as price opened within the lower end of the previous two day balance, traded below the low of the balance area in C period and accelerated, one time framing lower for five consecutive periods.


The move coincided with a sharp break in crude oil futures after the release of the EIA petroleum inventory report cited a decline in crude production.

After balancing in G and H periods the market reversed and short covered to close back into the previous day’s range, one timeframing higher from the low.

Wednesday’s late rally high at 2171.00 could be resistance on Thursday if price opens below that level. Acceptance above 2171.00 targets Wednesday’s poor high at 2172.75 and Tuesday’s unrepaired wide point of control at 2174.25, followed by the single print at 2177.00. Acceptance back into Tuesday’s upper distribution could then possibly target the poor high from Aug. 29 at 2182.25.

Potential destination trades to the downside, should price fail to find acceptance back above Wednesdays rally high, include Wednesday’s low at 2159.50, the prior week’s unrepaired poor low at 2157.50 and potentially the prominent point of control at 2153.25 from Aug. 3rd. There is also an unrepaired poor low at 2141.50 from Aug. 2nd.

Another possibility is for Thursday to be a low volume balancing trading session ahead of Friday’s monthly jobs report and the long US Labor Day weekend.

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ES Stalled at Midpoint of Range

Price rallied off the open of Monday’s ES pit session, stalling at and later pulling back to the approximate midpoint of the prior multi day trading range and leaving a three TPO wide selling ledge at 2178.25 in L, M and N periods.


Value ended the day overlapping to higher, with the point of control also migrating higher intraday from an earlier 5 TPO wide at 2177.25 to 8 wide at 2179.25 by the close, but NYSE volume was very low at just 2.65 billion suggesting shorter term traders in control with no continuation of the earlier apparent short covering move.

2178.25 could be a go/no-go level. Monday’s market profile chart left a poor high at 2182.25. Any downside break should probably be looked at more cautiously if the high isn’t repaired first, monitoring one timeframing for potential continuation lower.

Accelerating through Monday’s high could target the prominent point of control (2187.75) and all time high (2191.50) from Aug. 23rd.

ES Daily Chart

(the above post and every post on 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. Please read our disclaimer)

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