ES – Poor High and Poor Low at Two Day Balance

Balance trading rules could again apply to the S&P E-mini on Tuesday. With no clear direction from longer timeframe participants the ES pit session is trading inside just a 12 point, two day balance near its all time highs.

Potential trading scenarios are:

1) Look above the two day balance at 2295 and accelerate to, and potentially through, the all time pit session high at 2296.50, possibly testing the Globex all time high at 2299.50.

2) Look below the two day balance and accelerate, filling the gap from February 2nd at 2279.75 and possibly retesting the back to back prominent points of control from Feb. 1/2 at 2272.50/.75.

3) Look either above or below the two day balance and fail – with the opposite end of the range, and potentially beyond, being the destination trade.

4) Remain within 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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Four Day Balance Ahead Of Monthly Jobs Data

The S&P E-mini is trading in a four day balance area heading into Friday’s monthly job report. Market Profile balance trading rules could apply:

1) Remain within balance
2) Look above or below balance and fail; on a failure the opposite extreme becomes the destination trade.
3) Look above or below balance and accelerate; these events could target directional reference levels.

Acceptance on either side of the back to back, very prominent points of control at 2272.50/75 could provide early directional clues. Trading at the point of control (fairest price) before attempting a breakout of balance should increase the odds of continuation from a breakout, failure to first trade to the prominent POC might result in a failed breakout attempt.

While there is now significant excess at the all time pit session high at 2296.50 on both the weekly and monthly bar charts, there is only four ticks of excess on the daily profile chart on the day it was created, it is also a poor high, at two TPO’s wide.

Additionally the all time 24 hour high, made in an overnight session, is at 2298.50, two ticks shy of the psychological 2300 level. To date, all time highs created in the Globex sessions have always been revisited during regular U.S. pit session hours.

(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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