Double Distribution Trading Day

After grinding its way higher to take out the latest Globex all time high by two ticks before one timeframing lower for 6 periods on Tuesday, Wednesday’s ES pit session opened slightly above Tuesday’s close and chopped around in a 5 point range for three periods before breaking to the downside in D period, forming a double distribution and filling in some of the excess single prints from August 5th.

market-profile-double-distribution

Both value and the point of control migrated lower during Wednesday’s session.

So was Tuesday’s grind higher to take out the Globex session all time high and establishing a new pit session all time high “game over, side out” for the market participants who drove price up there? Will this latest new all time high be lasting, at least for a while? Only time will tell.

For Thursday’s U.S. trading session, market profile traders will want to monitor for price acceptance or rejection around the two distributions from Wednesday, and poor low at 2167.75.

Acceptance below the lower distribution could target the unfilled gap and prominent point of control from the August 4th profile. Trading with acceptance back into the upper distribution targets Wednesday’s high and could challenge the all time high from Tuesday.

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

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More New S&P Emini All Time Highs

After ending the previous week as an outside week – the weekly bar trading below but closing above the prior week’s range – the ES pit session gapped open higher on Monday seeing another new all time S&P emini pit session high put in at 2181.25, 7 ticks shy of the new all time high at 2183.00 it made in the overnight Globex session.

Monday was a no confidence, slow pace trading session with value beginning the day higher but settling almost unchanged, and ending with back to back prominent points of control at 2176.50

Back-to-Back-Wide-POCS

The market traded mainly between the previous day’s high and pullback low off of the prior multi day trading range high at 2172.75

If Tuesday’s open is within Monday’s range, failure to trade with acceptance above the wide POC could easily target Monday’s poor low and possibly see price return back into the previous trading range below 2173, and filling in some of the excess single prints from August 5 and the unfilled gap from August 4th at 2163.50.

But the selling from the matching D/E period highs on Monday came from the exact halfback level at the time and was also just a tick below the previous day’s high, a very visual trading reference. If price trades above Monday’s wide POC on Tuesday that level could easily be revisited. Trading with acceptance above the POC could target Tuesday’s high and the new Globex all time high at 2183.

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