Short covering following gap open lower



The market rallied following an overnight selloff on the news that Trump’s top economic adviser, Gary Cohn, had announced his resignation.

Overnight inventory was 100% short leading to a gap opening lower on Wednesday.

short covering from overnight inventory

Thursday’s rally was not particularly on high volume. NYSE daily volume was also relatively light at 3.35 billion.

Wednesday’s profile was balanced. Notable Market Profile references for Thursday ahead of contract rollover:

market profile trading references

Balance trading scenarios could apply regarding Wednesday’s balance high or low; Look above or below the range and accelerate/find acceptance, http://es-traders.com/short-covering-following-gap-open-lower/?preview=truelook above or below and fail, or remain in balance (probably lowest of odds).



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