Wednesday’s early trading session opened two ticks above the prior range and failed, returning back into the range. But with anemic volume and just a 3 1/2 point first hour initial balance price could not find acceptance below Tuesday’s very prominent, 12 TPO point of control. The market remained in that small range until the release of the Fed Minutes in J period, but the total range for the day was less than 8 points, following Monday’s 7 1/2 point range.
For the second day in a row the market found early support at the previous day’s point of control, a very visual short term trader’s reference. Short term traders do what works until it doesn’t work anymore – acceptance above 2398.75 on Thursday should easily test Wednesday’s close at 2401.50 and probably 2404.00, Wednesday’s high, and challenge the latest all time high at 2404.50.
Price acceptance below the prominent 11 TPO wide point of control at 2398.75 could lead to a test of Wednesday’s low. Trading below 2396.25 would stop the onetimeframing higher on the daily chart.
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