Tag Archives: gap

ES Gaps Open Higher Following Macron’s First Round French Presidential Election Win. New Trading Range or Island Reversal?

The ES gapped open higher over 24 points on Monday, breaking out of Friday’s inside day and the prior inside week before the Market opened. Sunday’s Globex session open, at 2365.75, was 18 1/2 points above Friday’s 2347.25 pit session close.

After the US market opened, the day’s opportunities were confined to just an 8 1/4 point, low confidence, slow paced trading session that failed to even trade to either the overnight low or high (Globex range = 11.5 points).

US pit session Market Profile chart

island reversal or new trading range

Potential balance trading scenarios could apply for Tuesday’s regular trading session, depending on where price is at the open:

  • look above Monday’s high, repair the poor high from April 5th at 2375.00 and continue higher on a potential quest for a new all time high.
  • look above Monday’s high and fail, potential destination target at Monday’s poor low.
  • look below Monday’s poor low and accelerate, finding acceptance and attempt to fill the prior week’s gap.
  • look below Monday’s low, repairing the poor low, and return back into balance potentially targeting Monday’s high.
  • Remain in balance. It is not unusual for price to form a new trading range after a large gap open to begin a new week, as large gaps are rarely filled on the day or the day after they’re created.
  • (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. DO NOT BASE ANY INVESTMENT DECISION UPON ANY MATERIALS FOUND ON THIS WEBSITE. We are not registered as a securities broker-dealer or an investment adviser either with the U.S. Securities and Exchange Commission (the “SEC”) or with any state securities regulatory authority. We are neither licensed nor qualified to provide investment advice. Please read our disclaimer)

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ES – Gap open to another new all time high following three day balance

Friday’s U.S. pit session traded entirely inside the previous two day balance, making it a three day balance with back to back inside days, before setting another new all time high in the S&P emini in Sunday’s overnight Globex session at 2356.75. Monday’s holiday shortened electronic session traded above the three day balance, where Tuesday’s pit session gapped open higher (from Monday’s close and point of control) at 2253.00.

Tuesday’s opening 30 minute period traded higher through the newest Globex all time high, continuing the climb through C period to put in a new pit session all time high at 2365.00.

Generaly, following a gap open higher, if the lower gap is not filled and value develops higher for the session, odds are high of a late rally in the direction of the gap. D and E period bars reversed off the high, filling in some of the excess single prints from A period, but failed to fill Friday’s gap and formed a balance with a wide point of control at 2359.00. A late rally beginning in J period could only make a new all time high by a single tick, leaving a poor high with just one tick of excess.

All trends remain up, and the market is still one timeframing higher on the daily, weekly and monthly charts. For any potential meaningful change to occur the market will have to stop one timeframing higher.

Acceptance below Tuesday’s POC could see price test Tuesday’s low, which was mechanically just off Monday’s shortened electronic session’s close and point of control. Trading below 2352.75 will stop the one timeframing higher on the daily chart, and target the unfilled gap at 2351.00. Acceptance back below the top of the three day balance at 2351.00 has the potential of price targeting the opposite side of the balance. Taking one reference at a time, February 17th’s spike base at 2343.00, wide point of control at 2341.50 and near matching lows at 2336.50/2337.25 are potential destination trades within the prior three day balance.

Acceptance above Tuesday’s point of control could see price attempt to repair the poor high, and if it does, will higher prices be accepted, or rejected and trade back within Tuesday’s balance?

(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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