FOMC Day Leaves Questionable High and Low in Market Profile

weak high and poor low in ES market profile chart

The ES is trading in a two day balance. Potential trade scenarios could include:

– Remain in balance, possibly trading slightly above or below the current two day balance, but mainly trading within it.

– Look above and repair the near matching highs and fail to find acceptance at higher prices, returning back into the two day balance targeting the point of control and potentially the opposite end of the range.

– Look above the two day balance, repairing the two near matching highs and find acceptance at higher prices, targeting the low from 1/26 at 2846.50 and potentially the unfilled gap from 1/19 at 2851.50. Acceptance back into that balanced day’s profile could target the value area low, point of control, and possibly the high of that day. The all time high was made in an overnight session. Although they can last for some time, record highs made in after hours trading sessions have always been revisited during a regular hour trading session.

– Look below and repair the poor low at 2813.00 and return back into the two day balance, targeting the point of control and potentially the high of the range.

– Look below the current two day balance low at 2813.00 and find acceptance at lower prices, targeting the prior weekly low at 2809.25, potentially testing the 2800 level.

If price opens with the range, the near back to back points of control could provide early support or resistance, depending on which side of it price opens. Prominent points of control can often act as price magnets, drawing price back to it.

(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. 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)

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