The market caught a downdraft overnight that both my algorithms and I were modestly surprised to see. We’re still riding through choppy indecisive waters, but the sellers have the early edge.
We’re catching a bit of a rally off the globex low of 1686.25 and it will be important to see how the market treats 1690.50 early on. This level represents the value area low of yesterday’s session and if sellers are able to reject price away from the above value zone, the market could work to discover value lower.
If you look below at the orange scenario on the 24 hour profile, it would also come as no surprise to see the market work back through this large value zone and take out the double top at 1697.
I’ve presented these possible scenarios and relevant price opportunities on the following market profile charts:
