After the second consecutive gap open higher, price tagged the overnight high at 2797.75 to the tick and struggled to find acceptance above the June high at 2796.00.
Tuesday’s profile, just a 9 1/4 point trading range, was a near perfectly balanced market profile bell curve. The profile chart shows a very prominent point of control at 2793.75 and a no excess high (three TPO’s wide) at 2797.75, which was also the overnight high coming into the day trading session.
If the market gaps open higher again on Wednesday it would be unusual to have three consecutive gaps, and the risk to longs would apparently be very high as recent underlying market structure is also very poor following the prior week’s end rally.
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