Wednesday’s S&P pit session gap opened higher, setting more new record highs following Trump’s Congressional speech on Tuesday evening. Price rallied to 2401.00 before settling to close at 2393.00, near the lower end of the upper balance in a double distribution trading range.

Wednesday’s late day pullback low at 2392.50 could be an early market profile trading reference on Wednesday, depending on where price opens.

Balance trading rules can also apply on Wednesday, looking at each distribution as as a separate balance. Price acceptance below the pullback low and upper distribution should see price test the top of the lower distribution, acceptance within that balance could target the opposite, lower, end of the balance.

Failure to find acceptance below the pullback low keeps the upward rally in tact. If the pullback high or low is not violated, there has been no meaningful change in the opposite direction of Wednesday’s trend.

Large trading gaps are rarely filled the day after they are created, which probably increases the odds of Thursday being a rotational, or balanced, trading session.

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