ES – One Day Balance, Inside Day Near All Time High

Short term traders controlled Thursday’s pit session, mechanically trading off very visual references:

– 2349.75 A period high of day is just one tick below previous close
– 2347.75 C period high one is tick below open price
– 2336.75 D period low of day is exactly at Wednesday’s single print

A new Globex high was not created before the U.S. pit session opened, 2351.00 is still the all time S&P emini high. Thursday’s market profile is balanced.

Although the market appears to be dangerously long, it is still trending higher in the short, intermediate and longer time frames. It is also one timeframing higher on the daily, weekly and monthly time frames. Price would have to take out 2336.75 on Friday to stop one timeframing higher on the daily, and all the way down to 2318.50 to stop the weekly one timeframing.

Both Thursday’s high and low are at exacting references – the high at 2349.75 is one tick from the previous close, the 2336.75 low exactly at Wednesday’s single print – both have good odds of being revisited. Thursday’s wide point of control at 2342.25 could be of significance early, if price first trades to the POC before attempting any breakout, the breakout could have better odds of continuation.

If the market opens within range, balance trading rules could apply to the inside day: Look above or below either side of the balance and accelerate, look above or below either side of the balance and fail -with the opposite end of the range becoming the potential detestation trade, or remain in balance.

(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

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S&P E-mini: another new all time high on double distribution trend day

Mostly choppy trade in the ES early Tuesday with no real acceptance above the previous day’s pullback low at 2324.50 until the fifth (E) period, before price accelerated through the latest all time high at 2229.00 in G period, forming a second, higher distribution.

Early pit session trade was also very mechanical to the short side – the A period high was just a tick below the previous close, the B period high a tick below the overnight half-back level, and the C period high exactly at the opening price. The market formed a poor C/D period low and one time framed higher through J period.

The one timeframing higher off the poor low didn’t stop until K period, but resumed after forming a small inside bar in L, where the market broke out higher to rally into the close and to another new all time high.

If Wednesday’s pit session opens above Tuesday’s late K period pullback low at 2331.25, that level could be short term support and keep the uptrend in tact. Failure to hold above that level should see price test the low of the upper distribution at 2329.50.

Looking at the two distributions as a separate day, or balance, balance trading rues can apply: Look above or below balance and accelerate, look above or below balance and fail, or remain in balance. When price is accepted back into a previous balance the opposite end of the balance is the potential target, or destination trade.

The market is very long.

(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

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