Tuesday’s ES market opened at 2378.50, 4 1/2 points above the prior high of Monday’s small range session and the second day in a row opening with a gap higher in price.
Overnight inventory was net long as most of the overnight trade above the prior pit close, and not corrected early with the opening drive higher. The pace slowed in B period, leaving 5 points of excess single prints and an early “P” market profile formation.
Balancing below the B period high, C, D, E & F bars traded in a tight three point range, and the point of control widened to 5 TPO’s. The lows of the B through E bars were very mechanically within a tick of each another.
split view profile
Price dropped sharply at the opening of G period, bouncing exactly off the session half back level at 2382.25, a very visual price reference. With the POC widening to 8 TPO’s in I period the market one timeframed higher off the G period halfback low until putting in a high for the day at 2389.25 in L period, 1 1/4 points above the very visual rally high and prior weekly high from March 15th at 2387.75.
Focus for Wednesday could be on the wide point of control at 2385.25 and regular session close at 2385.00. Acceptance below the POC should see price test Tuesday’s G period low at halfback, a weak reference because of the exactness of it. Acceleration/acceptance below 2382.25 would fill in at least some of the single prints from Tuesday’s early A period bar.
The market is now one timefaming higher on the daily chart for 7 consecutive days. Trading below Tuesday’s low at 2377.50 would stop the daily one timeframing higher.
Gaps are a sign of excess, and can also be viewed as single prints. Acceptance below 2377.50 could make an attempt to fill the gap above Monday’s high. Reentering Monday’s small range would have the potential for price to trade through that balance, target the poor low at 2365.75.
The all time high on the ES futures March contract was at 2401.00. The psychological 2400 level was not reached in the June contract after rollover. Acceptance above 2385.25 keeps the rally going, potentially targeting the psychological 2400 level.
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