Inside Day Following FOMC

Following some initial chop, the ES rallied in the first 30 minute pit session period through the prior day’s late M period rally high at 2260.00.

One timeframing higher for the first four periods and finding acceptance above 2260.00, price failed to reach the recent all time pit session high at 2273.00 and balanced, forming a 9 TPO wide point of control at 2261.50.

A later break in I period filled in some of the excess single prints from A period, but with no continuation lower in J period the market balanced again, with 2260.00 becoming late resistance.

Thursday’s point of control at 2261.50 (two ticks below the previous point of control) could be an early directional reference on Friday, depending on where the market opens. Price acceptance above the back to back points of control could test Thursday’s high and potentially lead to a retest of the recent all time high at 2273.00.

Failure to find acceptance above 2261.50 could see the I/J period pullback low at 2252.75 tested, and possibly Thursday’s low.

Thursday was as an inside day. There is always the possibility of breaking out of an inside day balance. The odds of continuation from a breakout should be greater if price first checks in with the wide point of control from the balance. There is also the possibility of price looking above or below the range and failing, returning back into the balance, potentially targeting the opposite end.

(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. Please read our disclaimer

Share  Facebooktwittergoogle_plusredditpinterestlinkedinmail


Subscribe: 

FOMC Day

Split view market profile chart, Fed Day, December 14:

The U.S. Federal Reserve raised interest rates on Wednesday and said it will look to increase rates three more times in 2017, instead of the two foreseen as of September, followed by another three increases in both 2018 and 2019.

The market sold off in choppy price action after the news, taking out the last two pit session lows, stopping the daily one timeframing higher, and coming within two ticks of the Dec. 9th low at 2242.50 before rallying to 2260.00 late in M period. The market closed off its low at 2252.00.

Depending on the open on Thursday, the late 2260.00 rally high could be resistance if price is accepted above Wednesday’s close at 2252.00. Failure to find acceptance above that level could keep the downward tone in play. If the market gaps open lower on Thursday and accelerates, price could attempt to repair some of the multiple anomalies left from the Dec. 7th and 8th market profiles.

Wednesday’s high was just two ticks below the previous day’s pit session all time high at 2273.00 (March contract), which was also a poor high on the market profile chart with just one tick of excess. Acceptance above 2260.00 could potentially lead to a retest of the recent new all time high.

(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. Please read our disclaimer

Share  Facebooktwittergoogle_plusredditpinterestlinkedinmail


Subscribe: