The ES gapped open higher to begin the week, breaking out of the prior multi-day trading range.
Multiple anomalies in the market profile chart are often a sign of more emotionally driven and shorter time frame momentum traders. At least some of the anomalies have good odds of being revisted in a soon-after trading session, if not in the next.
The late pullback low at 2769.50 could be an early trading reference on Tuesday, continued acceptance above that level could test the excess single prints above 2780.50 and possibly Tuesday’s high. Acceptance above the high could target the unfilled gap from 2/1, 2/2.
Price acceptance back below the pullback low could at least suggest a potential balancing day developing, and/or a possible test of the prior trading range high, and the gap fill from Friday.
Monday’s rally was not on notably high volume. NYSE daily volume was just over 3.2 billion.
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After a low volume breakout of the previous inside day the ES left another poor high on the Market Profile chart, trading back into the excess single print selling tail from March 21st.
Price acceptance above Thursday’s high will continue to fill in the March 21st selloff excess, retracing the downward move and possibly challenge the previous weekly high made on that day at 2378.75, ending the month on a bullish note.
The market is one timeframing higher on the daily chart going into the last trading day of the month. Price would have to trade above 2378.75 to stop the one timeframing lower on the weekly.
If Thursday’s poor high is repaired, monitor price for continuation above Thursday’s balance, or for a potential “look above and fail” scenario.
If price finds acceptance below 2358.50 and into the A period buying tail excess single prints, Thursday’s low at 2354.00 should have good odds of being tested, which would put price back into the prior balance.
During Tuesday’s rally, the late pullback low at 2351.00 (also the March 9th pullback low from the all time high) was an important trading reference. After being tested on Wednesday price rallied, although very mechanically and on declining volume, from that level. Trading below 2351.00 could bring more downside pressure.
(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. Please read our disclaimer
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