The ES broke out above its four day balance on Thursday, rallying to another new new all time high and leaving multiple anomalies in the Market Profile chart. Anomalies, or rough edges in the profile, are usually a sign of a market controlled by mostly short term emotional trading, and are often at least partially repaired in a trading session soon after they are created.
Price one timeframed higher from C period through K, with the point of control jumping higher to 2424.50 from an earlier 4 TPO wide at 2417. 00. Value was clearly higher the entire session.
Split view profile
The late day spike base in M period at 2426.50 could be an important early trading reference on Friday, depending on where price opens. Opening above the spike could show acceptance of the higher prices and keep Thursday’s rally intact, opening below 2426.50 could signal a rejection of the higher prices.
The late pullback low in L period at 2423.50 is also a notable Market Profile trading reference. Generally, if the pullback low is not breached, no meaningful change has occurred in the opposite direction of the previous day’s trend.
Acceptance below 2423.50 would increase the odds of price at least partially repairing Thursday’s lower anomalies, and potentially testing the high of the prior 4 day balance at 2417.75.
Friday is the release of the monthly jobs data, this report could cause extreme volatility in the markets early.
Note: Although all trends have, arguably, appeared to turn up, there now is substantial excess on the monthly, weekly and daily charts at the high.
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