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No price acceptance back into prior day’s upper distribution

Price could not find acceptance back above the prior day’s pullback low and upper distribution on Thursday:

Tuesday’s pit session opened at 2392.75, a tick blow the prior close and late day pullback low. Price quickly traded lower into the lower distribution from Wednesday. After an initial rejection and three point bounce, price failed to trade back into Wednesday’s upper distribution above 2391.25, and reentered Wednesday’s lower distribution a second time in B period. The high of C period could only trade one tick above the high of the lower distribution from Wednesday, keeping price contained in the lower distribution for most of the trading session.

Value ended the session clearly lower.

Depending on where price opens on Friday, acceptance below Thursday’s point of control at 2386.00 could pressure recent longs and trigger some profit taking. Thursday’s close at 2381.75 and low at 2378.00 are obvious visual references, along with the potential to fill the gap on the daily at 2370.75/2367.00. If price can find acceptance back inside the previous week’s multi-day balance below 2367.00, there is the potential for price to trade to the February 24th low at 2351.50 and the lower extreme of the trading range. The market has been one timeframing higher on the weekly chart for ten consecutive weeks, trading below 2350.50 will stop the weekly one timeframing.

All trends remain up. Acceptance above 2386.00 should easily test the 2388.00 K period high and target Thursday’s high at 2392.75, and potentially assault the 2401.00 all time high.

(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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2401

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.

(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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