Low Volume Breakout of Balance

After a low volume breakout of the previous inside day the ES left another poor high on the Market Profile chart, trading back into the excess single print selling tail from March 21st.

another-poor-high

Price acceptance above Thursday’s high will continue to fill in the March 21st selloff excess, retracing the downward move and possibly challenge the previous weekly high made on that day at 2378.75, ending the month on a bullish note.

The market is one timeframing higher on the daily chart going into the last trading day of the month. Price would have to trade above 2378.75 to stop the one timeframing lower on the weekly.

If Thursday’s poor high is repaired, monitor price for continuation above Thursday’s balance, or for a potential “look above and fail” scenario.

value-area-higher

If price finds acceptance below 2358.50 and into the A period buying tail excess single prints, Thursday’s low at 2354.00 should have good odds of being tested, which would put price back into the prior balance.

During Tuesday’s rally, the late pullback low at 2351.00 (also the March 9th pullback low from the all time high) was an important trading reference. After being tested on Wednesday price rallied, although very mechanically and on declining volume, from that level. Trading below 2351.00 could bring more downside pressure.

(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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Balanced, inside day in ES following double distribution trend day up

Balanced, inside day in the ES leaving a poor high on the Market Profile chart:

balanced-inside-day-market-profile-chart

Balance trading rules could apply Thursday. If price opens within range potential scenarios are for price to either look above or below the one day balance and accelerate, or fail, or remain balanced near the inside day and upper distribution from Monday.

Acceptance back into Monday’s lower distribution could see price target the low of that balance. Acceptance above Wednesday’s range would have price fill in excess single prints from the March 21st selloff.

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