Balance Following Rally, Leaves Questionable High

balance following short covering

The ES closed just above the high from Friday’s emotionally driven short covering session, leaving a questionable high in Monday’s profile at just a tick below the high from 4/30. There are now four closely grouped daily highs between 2681.50 and 2683.75 dating back to 4/23.

Monday’s wide POC could draw price back to it on Tuesday. Acceptance above the prominent point of control could target the weak highs, trading above the highs could potentially trigger stops above that area. The potential could also exist for a “look above and fail” of that area, or to remain balanced (probably the lowest odds).

Acceptance back below the POC from Monday targets the close (CME settle at 2670.00) and could test the low at 2662.50. There are multiple anomalies in the profile from the 5/4 rally in need of repair.

balanced profile

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