Inside Day Near All Time High

All trends remain up and the market is still one timeframing higher, price did not trade below Tuesday’s low and ended Wednesday’s pit session as an inside day.

Depending on where the market opens on Thursday, balance trading rules could apply – remain within balance, look either above or below balance and accelerate, or look above or below balance and fail.

Acceleration above Wednesday’s high should challenge the all time high at 2356.00, which is also a poor high. If tested, will price find acceptance above 2365.00 or return back into balance?

Price acceleration below Wednesday’s low at 2355.75 will stop the onetimeframing higher on the daily chart and could test Tuesday’s low at 2352.75, and could also attempt to fill the gap from February 15th at 2351.00, as there is no clear evidence of longer time frame participants in the current market. Additional lower price references were noted in Wednesday’s market profile recap.

Wednesday’s profile left a very prominent point of control at 2360.75, where all but one thirty minute market profile period traded through it. If there is to be a break out of balance from the inside day and two day balance, the odds of continuation should be greater if price first trades at that point of control. Support at the point of control increases the odds of a breakout higher, resistance at the point of control increases the odds of a breakout to the downside.

S&P Emini Daily Chart – one timeframing higher with four gaps under the market:

(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 – Gap open to another new all time high following three day balance

Friday’s U.S. pit session traded entirely inside the previous two day balance, making it a three day balance with back to back inside days, before setting another new all time high in the S&P emini in Sunday’s overnight Globex session at 2356.75. Monday’s holiday shortened electronic session traded above the three day balance, where Tuesday’s pit session gapped open higher (from Monday’s close and point of control) at 2253.00.

Tuesday’s opening 30 minute period traded higher through the newest Globex all time high, continuing the climb through C period to put in a new pit session all time high at 2365.00.

Generaly, following a gap open higher, if the lower gap is not filled and value develops higher for the session, odds are high of a late rally in the direction of the gap. D and E period bars reversed off the high, filling in some of the excess single prints from A period, but failed to fill Friday’s gap and formed a balance with a wide point of control at 2359.00. A late rally beginning in J period could only make a new all time high by a single tick, leaving a poor high with just one tick of excess.

All trends remain up, and the market is still one timeframing higher on the daily, weekly and monthly charts. For any potential meaningful change to occur the market will have to stop one timeframing higher.

Acceptance below Tuesday’s POC could see price test Tuesday’s low, which was mechanically just off Monday’s shortened electronic session’s close and point of control. Trading below 2352.75 will stop the one timeframing higher on the daily chart, and target the unfilled gap at 2351.00. Acceptance back below the top of the three day balance at 2351.00 has the potential of price targeting the opposite side of the balance. Taking one reference at a time, February 17th’s spike base at 2343.00, wide point of control at 2341.50 and near matching lows at 2336.50/2337.25 are potential destination trades within the prior three day balance.

Acceptance above Tuesday’s point of control could see price attempt to repair the poor high, and if it does, will higher prices be accepted, or rejected and trade back within Tuesday’s balance?

(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 – One Day Balance, Inside Day Near All Time High

Short term traders controlled Thursday’s pit session, mechanically trading off very visual references:

– 2349.75 A period high of day is just one tick below previous close
– 2347.75 C period high one is tick below open price
– 2336.75 D period low of day is exactly at Wednesday’s single print

A new Globex high was not created before the U.S. pit session opened, 2351.00 is still the all time S&P emini high. Thursday’s market profile is balanced.

Although the market appears to be dangerously long, it is still trending higher in the short, intermediate and longer time frames. It is also one timeframing higher on the daily, weekly and monthly time frames. Price would have to take out 2336.75 on Friday to stop one timeframing higher on the daily, and all the way down to 2318.50 to stop the weekly one timeframing.

Both Thursday’s high and low are at exacting references – the high at 2349.75 is one tick from the previous close, the 2336.75 low exactly at Wednesday’s single print – both have good odds of being revisited. Thursday’s wide point of control at 2342.25 could be of significance early, if price first trades to the POC before attempting any breakout, the breakout could have better odds of continuation.

If the market opens within range, balance trading rules could apply to the inside day: Look above or below either side of the balance and accelerate, look above or below either side of the balance and fail -with the opposite end of the range becoming the potential detestation trade, or remain in balance.

(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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