Balanced Day, Poor High at Latest New All Time High

After making yet another new all time high in the overnight Globex session at 2370.00, the S&P 500 E-mini U.S. pit session opened the week near the high of the previous week’s four day trading balance, and inside Friday’s late day spike above 2360.50. Generally, opening inside a spike shows acceptance of the higher prices from the prior day’s late price surge.

After trading through the top of the balance multiple times in B, C and D period, but short of the new all time Globex session high, price mechanically bounced off the open price at 2363.75 in the sixth (F) period before grinding higher to take out the new high by a few ticks, putting in a new all time pit session high at 2370.75. The new all time high can be considered a poor high on the market profile chart, since it has only one tick of excess at the L/M bar highs.

Monday’s point of control at 2366.00, just below the four day balance high, could be an early trading reference for Tuesday’s pit session. Although value had developed higher on Monday, the point of control did not migrate higher with the breakout from the four day balance.

If price does not make another new all time high during Monday’s overnight session, and opens inside Monday’s range, the POC could be early support or resistance. If the market opens below the POC and ignores Monday’s poor high, price should easily test Monday’s weak F period pullback low to the open and possibly retest Friday’s spike base at 2360.50. Below that level is a very prominent NPOC at 2358.00 that could act as a price magnet, pulling price back towards it.

If price does reenter and is accepted back inside the four day balance the lower extreme at 2351.00 (of the balance) has the potential to be a destination trade. If profit taking ensues and price sells off further, lower potential price targets are noted in this recent market profile recap.

Acceptance above Monday’s pit session point of control and close could easily see price test and repair the new all time high.

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