S&P E-mini Island Reversal off Three Day Balance

The S&P E-mini saw an open-drive lower to begin the week after a weekend of nationwide protests ignited by Trump’s Executive Order on immigration on Saturday. Price accelerated lower from the opening bell, repairing the anomalies from the stretched out January 24th market profile chart.

Often, a gap open lower on the weekly chart could signify the beginning of a new short term trading range. Also large gaps are seldom filled the day after they’re created. Depending on Tuesday’s open, the first area of potential resistance is Monday’s late rally high at 2277.00, which is also the prior emini all time high from January 6th.

Failure to find price acceptance above 2277 could keep pressure on the recent longs and attempt to repair the January 24th poor low remaining at 2262.00, and potentially test the prior trading range lows at 2251.75 and 2248.50, but the odds probably favor more of a balancing day ahead of Wednesday’s 2pm ET FOMC Meeting Announcement – barring any more Presidential Executive Orders.

(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

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ES – Small Range Balance at New All Time High

The S&P 500 E-mini March contract is trading in a two day balance at its latest all time high, hovering just below the psychological 2300 level.

Market Profile Chart:

Thursday’s profile left both a poor high at 2296.50, with matching B/C period highs, and a very prominent point of control at 2292.75, where all but one of the session’s thirteen, thirty minute market profile bars had traded through it.

The previous day’s overnight trading session made a new all time high at 2299.50, just two ticks shy the the psychological 2300 level. Historically, all time highs made in the overnight sessions have always eventually been traded through during regular U.S. pit session hours.

Acceptance above Thursday’s very prominent point of control, and close at 2294.00, on Friday should see price at least attempt to repair the poor high at 2296.50 and potentially mount an assault on the overnight session all time high and 2300.00. Failure to find acceptance above 2292.75 on Friday could easily see price test Thursday’s narrow range low. Price acceptance below that level could target Wednesday’s low of 2284.25 and, if it can break out to the downside, try to fill the gap at 2280.50, and potentially test the previous all time high at 2277.00.

There are also the possibilities of price remaining in balance, or looking either above or below either side of the balance and failing, returning back into the range, potentially targeting the opposite end of the balance.

S&P 500 E-mini Daily Chart:

(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

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