Gap Open Higher Repairs Two Poor Highs, Leaves A New One

A gap higher opening on the ES repaired the poor high from the July 3rd and poor/matching highs from June 28/29, but also left a new poor high in the current profile at 2443.75.

ES gap open higher repairs two prior poor highs, leaves one
ES gap open higher repairs two prior poor highs, leaves one

The bulk of the move higher happened in the pre-market, as price was contained to just a 9 point range in the regular trading hour session with mechanical buying from just above the prior weekly high at 2436.50 in the D and F periods.

short term traders buying near prior weekly high
short term traders buying near prior weekly high

Large gaps are rarely filled on the day or day after they’re created, and often during gap days if the gap is not filled and value does not become at least partially unchanged, the odds favor a late day rally in the direction of the gap. A late rally did not occur as price settled at 2439.75, two ticks above the half back level of the session after one timeframing higher in price in F through K periods.

Notable references for Thursday are the prior weekly high (an inside week) at 2436.50, on the downside, and Thursday’s poor high at 2443.75 on the upside.

Wednesday’s profile was balanced. Acceptance and continuation above the poor high targets the last remaining unrepaired poor high above from 6/26 at 2447.50, and potentially the all time high at 2351.50.

Acceptance below last week’s high at 2336.50 first potentially targets Thursday’s low at 2434.75, followed by the top of the gap at 2427.25.

Wednesday’s point of control was very wide, if a breakout occurs from Thursday’s balanced range there should be better odds of continuation if price first revisits the POC.

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