After a first hour of low confidence, choppy price action start to the last regular trading session of the month the US indices were once again in rally mode following comments from Bank of England’s Carney and the ECB, saying they will probably need to pump more stimulus into Britain’s economy after the shock of last week’s Brexit vote.

After the comments the ES one timeframed higher for all but one trading period, where it stopped just one tick shy of filling the gap from June 23rd, the trading day before the Brexit vote selloff.

While value and price ended clearly higher again, there are now two consecutive trading sessions with very poor, stretched out profiles with multiple anomalies. Thursday’s profile also left both a poor high and a poor low. Structural weaknesses in the profiles, including anomalies and multiple distributions, are components that help establish the odds. Although the odds might favor repairing some of the poor structure below, they are just odds. Short covering forcing action does not adhere to the Market Profile structure, it continues until the conditions that created it are alleviated.

Was the Brexit Gap fill the short term goal, or will there be more pre-Holiday upside continuation trading on Friday?

Thursday left three separate distributions. Balance trading rules apply, looking at each distribution as a separate day, or auction. If price opens in the upper distribution between 2080.75 and Thursday’s poor high at 2091.25, trading below 2080.75 with acceptance could target the middle and lower distributions.

Trading above Thursday’s high, with acceptance, could target the psychological 2100 level, and the previous weekly high at 2106.75.

(the above post and every post on es-traders.com is an interpretation of market generated information using the Market Profile, and the information contained within is to be used for informational purposes only and not to be construed as investment or trading advice. Please read our disclaimer)

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