The ES gapped open higher on Wednesday, rallying mechanically at the open from the prior all time high, to the tick, and one timeframing from the C period low to another new record high at 2471.75.

The C period low was also a mechanical low because it was from a single tick above the overnight high at 2462.00, a visual short term traders reference. Apparent short term buyers were again buying mechanically off prior 30 minute bar lows Wednesday, but with a lack of sellers in the market price one timeframed higher for the remainder of the session.

Wednesday’s poorly structured profile shows the low confidence in the market, leaving multiple anomalies. Anomalies are often evidence of weaker hands, shorter timeframe traders and have good odds of being revisted. But until sellers appear, the market grinds higher.

There are only three ticks of excess on the daily profile chart, but more substantial excess again on the daily, weekly and monthly bar charts.

Failure for price to trade above Wednesday’s high, or a look above the high and fail scenario, could attempt to repair the anomalies in Wednesday’s profile. Any meaningful liquidation would see price trade with acceptance below the prior all time high at 2461.25, targeting the gap from Tuesday.

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