Three day balance in the ES
Thursday’s pit session ended with overlapping to lower value, but closed back within the previous two day’s trading range. Depending on Friday’s open, potential trading scenarios could be:
– Look above or below balance and accelerate
– Look above or below balance and fail and return back into balance, potentially targeting the opposite end of the balance
– Stay within balance
There are three similar highs now that are within one point of each other. Accelerating through 2141.25 could potentially set off a “firecracker effect”, where price hitting one set of stops can accelerate higher, hitting more stops above the prior highs. Price acceptance above those highs should see price fill in some of the single prints left from the October 11th selloff, and possibly close the Columbus Day gap at 2156.25, or price could return back into the three day balance if higher prices are not accepted.
Thursday left a wide point of control at 2134.75. Acceptance below that level, or if price opens below the POC and can not gain acceptance above it, opens the possibility of price retesting Thursday’s low at 2126.75. Acceleration through that level could bring the very prominent point of control from October 17th at 2122.75 and possibly the unrepaired poor low at 2117.75 in play to the downside.
(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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