Market Profile Chart Week Ending March 17, 2017

Short term traders were predominant in the market on Friday, leaving a poor low on the Market Profile chart at 2372.75. Price failed to close below the previous pit session low. Value was unchanged.

Depending on where price is at the open of Monday’s pit session, early focus could be on the near back to back points of control from March 16/17 at 2377.50/2378.25. Failure to find acceptance above that level tests Friday’s close and could easily see price repair the poor low, acceleration below that level could target the FOMC day low at 2365.75 and potentially the very prominent naked point of control from March 14 at 2361.25.

While the short and intermediate trends are balancing, the long term trend remains up. Price acceptance above 2377.50 has good odds of at least testing Friday’s high at 2382.25. Trading above that level would stop price from one timeframing lower on the daily chart and could then easily repair the poor high from March 16 at 2384.50, trading back into the excess single prints from the FOMC rally. Whenever price takes out prior excess the potential for change exists, if price rallies it opens the door to a possible retest of the latest all time high at 2398.50 on the March contract.

Looking at the profiles from Thursday and Friday as a two day balance, balance trading rules could apply:

– look above or below balance and accelerate
– look above or below balance and fail, and return into balance targeting the opposite end
– remain in balance

Another possible trade scenario could see price repair either the poor high or poor low from the two day balance and fail, returning back into the balance, targeting the opposing poor structure.

(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. Please read our disclaimer