Balanced profile after setting another new all time high following another gap higher opening, and leaving another poor high (only one tick of excess), that could signify either the market is too long, or there is unfinished business at the high.

A liquidation break in J/K periods filled the prior day’s gap at 2498.00 by one tick, but the wide point of control could not migrate lower as price mechanically reversed after the gap fill. Value clearly remained higher following the gap higher opening.

Potential balance trading scenarios that could play out ahead of Wednesday’s important FOMC meeting:

– Remain balanced/similar value around Monday’s range. Possible ahead of FOMC, although very narrow range.
– Look above and repair the poor high at 2506.00, finding acceptance at higher prices. All trends are up, although volume and volatility are low.
– Look above and repair the poor high at 2506.00 and fail, trade back into Monday’s balance targeting the wide point of control, and potentially the opposite side of the range.
– Look below Monday’s low and fail, return back into Monday’s range to test the wide POC, and potentially repair the poor high at 2506.00.
– Look below Monday’s low and accelerate lower, finding acceptance back into the 9/15 profile. Acceptance below 2497.75 targets the wide point of control from Friday, 9/15 at 2495.25 and possibly the low at 2490.50.

Taking out last Friday’s low at 2490.50 should test the weak, matching lows from 9/13 and 9/14 at 2489.25/.00, which could potentially trigger a “firecracker effect” below that level if stops are hit, targeting the unfilled gap from 9/11 at 2487.00.

Liquidation/acceptance below that level and back into the 9/11 range targets the anomalies in that profile, and potentially the excess single prints below 2478.75.

(the above, post and all posts 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. DO NOT BASE ANY INVESTMENT DECISION UPON ANY MATERIALS FOUND ON THIS WEBSITE. We are not registered as a securities broker-dealer or an investment adviser either with the U.S. Securities and Exchange Commission (the “SEC”) or with any state securities regulatory authority. We are neither licensed nor qualified to provide investment advice. Please read our disclaimer)