ES – Look Below Balance and Fail, Destination Trade: Back to The Top of Balance

The market continues to be dominated by short term and day time frame traders with no longer term participation outside of the now four day trading range.

Friday’s ES pit session opened with a slight gap below the previous day’s low and reentered the three day balance. When price looks outside of a balance and fails, then reenters the range, the opposite end of the balance is the potential short term price target.

Notable market profile references for trading on Monday’s pit session trading hours are the very prominent point of control at 2358.00, and the late day upward spike from 2360.50:

– If price opens below the base of the spike 2360.50 it could be considered negative, as the late price probe or spike is rejected, leaving a selling tail.

– Opening within the spike above 2360.50 could show that price is accepted and keeps the rally in tact, finding a level where two sided trading can occur.

– Opening and trading above the top of the spike can imply that price did not trade high enough on Friday to cut off the buying and allow two-sided trade to take place.

Balance trading rules still could apply, depending on where price is at Monday’s open, as price was mainly contained inside the three day balance, making it a four day balance:

– Look above or below the four day balance and continue higher or lower.

– Look above or below the balance and fail and reenter the range, with rotation back to the opposite end of balance the potential target.

– Remain in balance.

Friday’s opening period low came within one tick of filling the gap at 2351.00. Value ended the session as overlapping to lower.

(the above post and all posts on 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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