The S&P E-mini is trading in a four day balance area heading into Friday’s monthly job report. Market Profile balance trading rules could apply:
1) Remain within balance
2) Look above or below balance and fail; on a failure the opposite extreme becomes the destination trade.
3) Look above or below balance and accelerate; these events could target directional reference levels.
Acceptance on either side of the back to back, very prominent points of control at 2272.50/75 could provide early directional clues. Trading at the point of control (fairest price) before attempting a breakout of balance should increase the odds of continuation from a breakout, failure to first trade to the prominent POC might result in a failed breakout attempt.
While there is now significant excess at the all time pit session high at 2296.50 on both the weekly and monthly bar charts, there is only four ticks of excess on the daily profile chart on the day it was created, it is also a poor high, at two TPO’s wide.
Additionally the all time 24 hour high, made in an overnight session, is at 2298.50, two ticks shy of the psychological 2300 level. To date, all time highs created in the Globex sessions have always been revisited during regular U.S. pit session hours.
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