Another Late Selloff, Market Profile Double Distribution

Very mechanical trading early on Tuesday, usually indicative of shorter term and day time frame traders controlling price.

Price could not reach the base of the late spike from Monday at 2650.50, but traded as high as 2648.75 before one time framing lower off the high. Value was clearly going to be lower following the previous day’s late selloff from the all time high.

double distribution selloff
Late selloff leaves double distribution in Market Profile chart, session closes near low.

After a choppy start when the market opened inside of and near the low of the previous day’s range, price bounced between the opening print and previous close in the first half hour period before trading higher to just a single tick above the single print from Monday’s profile at 2648.50, leaving a poor high with only one TPO of excess.

split view profile
Split view Market Profile chart for 12/5/17

The market balanced through I period, developing a wide point of control at 7 and 8 TPO’s at 2639.75 before the late selling in J period which formed the second, lower distribution beneath the earlier A/H bar’s poor low.

Looking at each of the distributions as a separate balance, potential balance trading scenarios could apply, depending on where the market opens:

– Look above or below a distribution and find acceptance at higher or lower prices
– Look above or below a distribution and fail to find acceptance, trading back into the balance and potentially targeting the opposite end
– Remain within balance

Price acceptance below Tuesday’s low could trigger further liquidation, potentially targeting the 2605 low from 12/1, and the prior weekly low at 2597.75.

Although maybe unlikely, if price recovers during the Globex overnight trading session and opens Wednesday inside the upper distribution from Tuesday, or finds acceptance back into the upper distribution, the poor high at 2648.75 and spike base from Monday at 2650.50 remain in play.

(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. 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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ES Sets Another New Record High and Sells Off, Leaves Market Profile Spike




After setting another new all time high during Sunday evening’s Globex session at 2663.25, the ES gapped open 4.5 points above Friday’s high, rallying from the prior 2658.50 all time high in the opening period to trade two points above the overnight high, and setting a new regular trading session record high at 2665.25 before reversing.

selloff from new all time high
After trading two points above a new record high set in the overnight Globex market, the ES set a new regular session all time high and sells off from it, leaving a late day Market Profile spike at 2650.50.

A sharp move in C period traded, mechanically, to exactly at the prior day’s high and bounced, closing the gap but leaving an early poor low with only one tick of excess at the C/D bar lows.

 split view market profile chart 12-4-17
Split view market profile chart 12-4-17

The high of F period mechanically filled in, to the tick, the B/C period single print and continued to balance until selling off again in J period, forming a late day spike below 2650.75.

2650.50 could be a key Market Profile trading reference on Tuesday as the base of the late day spike is generally resistance. Remaining below the spike base keeps the downward trend from Monday in tact, with good odds of price retesting Monday’s low.

Acceptance back above the spike base could nullify Monday’s late bearishness, which could lead to a retest of Monday’s point of control. Acceptance above the POC targets the near matching E/F/H/I bar highs and potentially the latest, new all time 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. 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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