Four Day Balance Below All Time High

four day balance
Four day balance below latest all time high

Thursday’s market profile chart left another poor high with no TPO’s of excess at 2696.00. The all time high from 12/18 is also a poor high with only one tick of excess at 2698.00, increasing the odds that the all time high will be retested at some time.

Early developing value on Friday could provide clues as to attempted market direction ahead of the Christmas Holiday weekend. Potential scenarios could include a look above in price to repair the poor highs, potentially targeting the 2700 price level and either find acceptance at higher prices, or look above and fail, trading back into the four day range.

Other potential scenarios could see price:

– remain within the four day balance
– look below the range and find acceptance at lower prices, potentially targeting the levels noted in Wednesday’s market profile report,
– or look below the four day balance and fail, returning back into the trading range.

There are regular trading hours for the CME Group Equity Products on Friday, December 22nd, but the markets are closed on Sunday, December 24th and on Monday, December 25th, with a 5:00pm (CT) open on Monday for Tuesday Trade.

(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. DO NOT BASE ANY INVESTMENT DECISION UPON ANY MATERIALS FOUND ON THIS WEBSITE. We are not registered as a securities broker-dealer or an investment adviser either with the U.S. Securities and Exchange Commission (the “SEC”) or with any state securities regulatory authority. We are neither licensed nor qualified to provide investment advice. Please read our disclaimer)




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Back-to-Back Market Profile (lower case) ‘b’ Formations

Back-to-back Market Profile 'b' formations
Back-to-back Market Profile ‘b’ formations

Lower case Market Profile ‘b’ formations can suggest the market had gotten too long in the short term, resulting in short term liquidation off the latest all time high, and probably not the more potent combination of liquidation and new money selling.

Wednesday’s profile chart left a very wide (12 TPO) point of control at 2684.5. Acceptance above the POC could target the excess singles prints from the prior two day’s opening periods, and potentially re-test the all time high at 2698.00, which is a poor high with no excess, and potentially the 2700 level.

Acceptance below the POC targets the close from Wednesday, and low of day at 2679.00. Price acceptance below Wednesday’s low could lead to further liquidation, potentially testing the late, mechanical pullback low from 12/15 at 2674.25, and possibly the singe print at 2669.25, and low from that day at 2666.00.

(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. DO NOT BASE ANY INVESTMENT DECISION UPON ANY MATERIALS FOUND ON THIS WEBSITE. We are not registered as a securities broker-dealer or an investment adviser either with the U.S. Securities and Exchange Commission (the “SEC”) or with any state securities regulatory authority. We are neither licensed nor qualified to provide investment advice. Please read our disclaimer)




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6.5 Point Range, Balance, After Gap Open Higher to begin the Week Before Christmas

gap higher

Potential island reversal or new trading range? The ES gapped open higher to begin the Christmas holiday trading week, trading in a balanced, small 6.5 point range. Euphoria over Trump’s tax plan still dominant.

Often, since large gaps are rarely filled the day or day after they’re created, when the market gaps open by a large point amount it can be the beginning of a new short term trading range.

Monday’s market profile chart featured a very prominent point of control and a poor high, also another new all time high. Balance trading scenarios could apply:

– look above and repair the new all time high (poor high) at 2698.00 targeting the 2700 price level, finding acceptance at higher prices.

– look above repair the poor high and fail to find acceptance, trading back into the prior range and targeting the wide POC, potentially the low of day and gap below. Gaps are a form of excess, they can be visualized as single prints on a market profile chart.

– look below Monday’s range and fail, return back into balance, targeting the wide POC and potentially the poor high and 2700 level.

– look below Monday’s range and find acceptance at lower prices, targeting the excess and potentially the ufilled gap from 12/15.

Another possible scenario would be to remain balanced around Monday’s range, which could be more likely considering the lightened holiday volume, barring any significant outside news events.

Note: There are currently four unfilled gaps since November 15th below the current price. This is highly unusual, poor structure that was likely caused by emotional momentum type short term and day time frame traders. The odds are very high that some of these gaps will be filled in in the near future.

(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. DO NOT BASE ANY INVESTMENT DECISION UPON ANY MATERIALS FOUND ON THIS WEBSITE. We are not registered as a securities broker-dealer or an investment adviser either with the U.S. Securities and Exchange Commission (the “SEC”) or with any state securities regulatory authority. We are neither licensed nor qualified to provide investment advice. Please read our disclaimer)




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