Sometimes a market has to break before it can rally any further. Will that be the case in the ES, or is it on a mission to reach 2500?

Another very small range on Wednesday, just 6 1/4 points following Tuesday’s 7 point range. The ES December contract has traded in under an 8 point range the past two days combined.

After reaching another new all time high in the Globex overnight session at 2495.50, the day session finally matched that level in the final periods, leaving another profile with a poor high.

Wednesday’s point of control, or fairest price, was at 2493.00. Each 30 minute period traded through that price level, leaving it very wide at 13 TPO’s.

Depending on where price opens, balance trading scenarios could play out on Thursday in regards to the two day balance. Acceptance above Wednesday’s high at 2495.50 probably targets the psychological 2500 level, acceptance below the two day low could target the anomalies and excess opening period single prints from the September 9th profile.

There is also the potential for a look above or below balance and fail. If that occurs price should be first drawn back to the wide point of control, then possibly (at least) to the opposite end of the small two day range. Lower potential price targets, should liquidation occur, were posted in Tuesday’s Market Profile Report.

Remaining in balance within this current 8 point range should be unlikely.

(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. DO NOT BASE ANY INVESTMENT DECISION UPON ANY MATERIALS FOUND ON THIS WEBSITE. We are not registered as a securities broker-dealer or an investment adviser either with the U.S. Securities and Exchange Commission (the “SEC”) or with any state securities regulatory authority. We are neither licensed nor qualified to provide investment advice. Please read our disclaimer)