The ES traded in a 9 point balance on the last trading day of the month, leaving a prominent point of control at 2123.50, and both a poor high and a poor low with only one tick of excess at each end.
Balance trading rules could apply on Tuesday:
- look either above or below Monday’s balance and accelerate
- look above or below balance and fail – returning back into the balance, targeting the opposite end
- remain balanced
Acceptance above Monday’s high at 2127.75 could target the October 28th poor high at 2135.25. Acceptance below Monday’s low at 2118.75 could see price test the prior weekly low at 2112.50, and potentially the October low at 2007.75.
Monday’s close at 2123.00 and prominent point of control at 2123.50 (fairest price) are within two tick of each other, a breakout from either side of Monday’s range should have better odds of continuation on Tuesday if price first tests that area.
Expect volatility this week as this is a heavy news week, including the FOMC meeting announcement on Wednesday and the monthly jobs report on Friday.
The ES is one timeframing lower on the monthly chart.
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