Thursday’s profile featured an overlapping to lower value area but a point of control that migrated higher following early selling.
The market stopped one timeframing higher on the weekly chart last week, although it still closed as an outside week. Price has stopped one time one timeframing higher on the daily chart on Thursday, after five consecutive regular hour trading sessions of one time framing higher.
For any potential meaningful change to the downside, price would have to find acceptance back below the base of the late day spike above the near matching F/G/H/J/K/L bar highs that were all within one tick of one another. The wide point of control at 2573.00 would be the next downside reference.
The matching K/L period lows at 2571.00 were very mechanical and probably have decent odds of being revisited. Price rallied from there to spike above the L bar high in M period, possibly just as a stop run by shorter timer frame traders.
Generally, acceptance or rejection of a late day spike on the next trading day either confirms or rejects the direction of the late day price probe – opening and remaining above it is positive, opening below it is negative, and opening within it shows possible acceptance and a place where two sided trade can take place.
Acceptance above Thursday’s POC and base of the late spike probe higher targets Thursday’s poor high at 2578.25 and potentially the excess above the prior week’s high at 2580.75. Removing that excess challenges the latest all time high from 11/1 at 2585.50. The very psychological 2600 level could next be on the radar in the event of a rally to new all time highs.
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