The ES pit session gapped open 11 points higher from the prior close on Monday. Overnight inventory was 100% long, following net short inventory from the previous pit session close.
The overnight session traded through the three similar daily highs and into the single prints from Oct. 11th., but the pit session couldn’t find acceptance above above the overnight high at 2147.50 and chopped around in an 8 1/2 point point range. Monday’s pit high was 2149.00.
The ES has been dominated by short term traders. Short term trading technical indicators include trend lines. If price can find acceptance above Monday’s high at 2149.00, the trend line on the weekly chart could be tested, which would also aligns with the closing of the Columbus Day gap at 2156.25:
If Monday was a true break out of balance to the upside, rather than just overnight session traders running stops above those three similar daily highs, then price should not immediately find acceptance back below the previous weekly high at 2142.50. Volume and pace on Monday was not supportive of a breakout.
Failure to find acceptance above Monday’s close and wide point of control at 2144.50/75 could easily see price test the previous weekly high at 2142.50 again, followed by Monday’s low at 2140.50. Acceptance below Monday’s low might see an attempt to fill Friday’s gap at 2136.75 and potentially target the anomalies from Friday’s profile.
(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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