Traders Await House of Representatives TrumpCare Vote

Early volatility, choppy, mechanical price action Thursday as traders await the outcome of the U.S. House of Representatives TrumpCare healthcare bill vote. Initially scheduled for Thursday evening the meeting was postponed, which prompted late selling when that announcement came out.

The market is in a three day balance between Tuesday’s selloff lower distribution high at 2357.25 and Wednesday’s low at 2332.25, which corresponds to near matching lows from February 16/17. If traders do not like the results of Friday’s House vote the potential exists of a downside breakout, potentially hitting stops below the balance low.

ES Balance Area

If a more serious breakout occurs, potential destination targets to the downside could include the unfilled gap from February 10 at 2312.75, and the emotional 2300.00 price level.

ES Daily Chart

If the market likes the vote results and breaks out higher from the balance it could fill in some of the many single prints from Tuesday’s upper range.

Other potential trade scenarios could see price look either above or below the balance and fail, return back into balance potentially targeting the opposite end, or remain in balance. The odds are probably lower that price remains in balance if the vote results are released during the U.S. pit session.

(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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