The market rallied higher after a gap opening above the prior day’s range, leaving a stretched out profile with multiple anomalies.
Anomalies in the profile generally have high odds of being revisited or “repaired” in a nearby future trading session, as they’re often caused by more emotionally news driven, shorter time frame and day traders.
The rally to one tick below the point of control from 11/8 was four points short of the latest regular session all time high at 2593.50. The all time Globex high, made in an overnight session, is at 2594.50.
Price had one timeframed higher from the open until J period, where the point of control had widened at 2586.75
A key early market profile reference, depending on where price opens on Friday, could be the late pullback low. Acceptance above 2583.25 could keep Thursday’s bullish momentum intact, potentially challenging Thursday’s high at 2589.50, the 11/8 high at 2592.50, and the all time regular and overnight highs (2593.50/2594.50).
Taking out the all time high would bring the psychological 2600.00 level into focus. It could also result in a “look above and fail” scenario.
Failure to find acceptance back above 2583.25 could pressure recent longs and reverse or pause the bullish sentiment from Thursday’s rally, repairing at least some of the anomalies in the profile.
Looking at each distribution from Thursday’s profile as a separate balance, or auction, balance trading scenarios could play out in regards to each: look above or below a balance and accelerate higher or lower, look above or below a balance and fail – targeting the opposite end, or remain in balance.
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