An important step to a potential change to the current up-trend occurred Thursday as price took out the prior three daily lows, stopping the one time framing higher on the daily chart, leaving a poor high on the market profile chart along with a questionable low, almost exactly at the low from 12/11.
The late rally high at 2661.75 could be an important market profile trading reference for the next day trading session. Failure to find acceptance back above that level could keep the previous day’s down trend intact.
Acceptance below 2654.25, the near matching lows from 12/11 and 12/14, could easily test the prominent naked point of control at 2650.50, with further liquidation possibly testing the top and bottom of the first gap below at 2646.50/2643.75. Price would have to trade below 2626.75 to stop the one timeframing higher on the weekly chart.
Thursday’s selling left a no excess, three TPOs wide poor high at 2671.25, probably signaling the market had gotten too long in at least the short term time frame. Price acceptance back above 2661.75 targets at least some of the multiple anomalies in the profile, and potentially tests the prior day’s poor high, and could lead to another attempt at the latest all time high.
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