Inside day to begin the week following the latest all time high last Friday. It is the third inside day in the last five regular trading sessions, emphasizing the current low confidence trading environment. Monday’s profile repaired the anomalies in the previous regular session’s profile.
There are six ticks of excess above 2579.25 on the market profile chart below the all time high at 2580.75. Acceptance above Monday’s high at 2577.50 could test that excess and the possibility of another new all time high. Acceleration/acceptance below Monday’s low at 2565.50 targets last Friday’s low at 2563.25, with the prominent naked point of control from 10/26 at 2560.25 and the low at 2555.50 within striking distance.
The prior week closed as an outside week to the upside, trading below the previous week’s low and closing above its high,
which could be construed as positive for higher prices. However, Monday’s price action did not test the weekly and latest all time high, and with value and the point of control developing lower, instead left excess at the high.
President Trump is expected to announce his choice for new Federal Reserve Chairman on Thursday, November 2nd, which could bring severe volatility to world markets. The odds might favor more of a balancing market until then, barring of course any other new major news events before that, including any unexpected surprises about President Trump’s alleged collusion with Russia or his tax reform plan, or North Korea’s nuclear missile program.
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