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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2329.00 New All Time High ES

After another new all time high was made in the overnight Globex session at 2319.75, the S&P e-mini pit session gap opened higher to begin the week at 2319.00 and mechanically one timeframed higher through the first 9 thirty minute market profile trading periods, manipulating another new all time high at 2329.00.

With overnight inventory 100% long from the previous session, the market got even longer during the U.S. pit session.

2329 all time high S&P emini

The mechanical buying began in B period at a tick above the A period half back level, and grudgingly grinded higher through I period without the low of any thirty minute bar taking out the low of the previous bar.

The one timeframing higher stopped in J period, where the market then mechanically one timeframed lower for the final four periods into the close.

The ES is one timeframing higher on the monthly, weekly and daily bar charts. Price would have to trade below 2318.50 on Tuesday to at least stop the daily one timeframing.

If Tuesday has another gap opening higher, or opens within Monday’s range above the late M period pullback low at 2324.50, that level could be short term support. Generally, a pullback low is the extreme of a late afternoon inventory adjustment, applicable on trend days. If the pullback low is not violated, there has been no meaningful change in the opposite direction of the prior day’s trend.

Acceptance below 2324.50 should see price attempt to fill in some of the poor profile structure from the one timeframing bar lows and B period low from Monday, and potentially fill the gap from Friday at 2315.75, possibly beyond. There is underlying poor structure in the market from the prior 4 day balance high.

(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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