A 5 day range in the ES following a small range, 4 day balance. Potential balance trading scenarios that could play out regarding Friday’s small 6.5 point range:
– Look above 2501.00 (and the wide POC from 9/21 at 2501.25) and find acceptance, targeting the high at 2504.50 and possibly the all time high at 2507.25.
– Look above 2501.25 and fail, reenter Friday’s range targeting the prominent point of control and probably the low at 2494.75.
– Look below 2494.75, accelerating through the prior weekly low at 2494.00, finding acceptance and reentering the lower distribution from the 9/15 profile at 2493.75. Acceptance below that level targets the poor near matching lows from 9/13, 9/14 and potentially the unfilled gap from 9/11.
– Look below 2494.75 and fail, return back into Friday’s balance targeting the wide POC and Friday’s high, and possibly the 2504.50 high and all time high.
– Remain in balance. Probably unlikely.
2494.00 could be a go-no go level to for price exploration to the downside. Acceptance below that level stops the one timeframing higher on the weekly chart, and would be a break out of balance to the downside of last week’s range. The lower end of the prior 4 day balance and gap would be the initial potential destination.
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