Another new record high was made in the overnight session before Tuesdays open at 2842.00. Price opened within the upper end of Monday’s range and late day spike (showing that the prior day’s late price probe was being accepted), and initially failed to take out the overnight high in the opening drive. A new all time regular session high was put in at 2844.75 after price rallied off the prior day’s high in C/D period.
Mechanical buying was the theme early, with buying at dips off mechanical price levels, most notably at the C/G/J bar lows at just one and two ticks above the prior day session high.
Notable Market Profile References
The D period excess above the C period high held throughout Tuesday’s balancing session, making 2843.75 potentially an important reference on Wednesday. If that excess holds, the odds probably favor at least a retest of 2836.75, and could increase the odds of a potential downside liquidation break and potentially lower prices.
The next downside references below 2836.76 are Monday’s low at 2832.00, and the base of Monday’s late spike at 2828.25. Price acceptance below that level targets at least some of the multiple anomalies in Monday’s profile. Anomalies are a sign of more emotional, momentum based trading and have high odds of being revisited in the very near future.
But all trends remain up. The very wide point of control at 2840.00 limited downside contnuation on Tuesday. That level could provide early support or resistance on Wednesday, depending on which side of it the market opens.
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