iBankCoin
I turn dials and fiddle with knobs to hone in on harmonic rotations
Joined Oct 26, 2011
4,080 Blog Posts

Overnight Rally Fades and We Find Balance

The globex session pieced together a bit of a rally yesterday evening, following through on a wave of upward momentum that rolled into the market late into Tuesday afternoon’s cash session.  The move encompassed 6.25 handles of direction which pressed into the single print selling tail from early yesterday morning.

The selling tail yesterday morning was a result of aggressive selling and the action left behind a low volume pocket from 1643.75 – 1639.50.  After setting an overnight high at 1642.25 the market stalled out and failed to sustain trade within the low volume zone.  However, we’ve balanced out since then and I’ll be on watch for a rotation through the low volume zone early on today.

Less may perhaps be more in the /ES_F today as the market is currently flat lining since the evening rally.  The buyers could have made better use of the momentum they carried into the overnight session, which leads me to question their tenacity.

I’ve laid out three scenarios on the 24 hour profile below, none of which would surprise me.  1629.75 is key support should scenario three take hold.  We’ll want to see bulls defending this level, otherwise prudent measures like raising some cash or taking a hedge should be considered.

1648 is key to the upside if we see the stronger scenario 1.  Momentum and profile/auction theory slightly favor a rotation higher, which is why I’ll be closely monitoring if and how the market conforms to scenario 1 this morning.

I’ve also noted price levels of opportunity on the following RTH profile chart:

ES_MarketProfile_09042013

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6 comments

  1. raul

    On the high side of scenario 1 and it’s 11am, either we fizzle out up here or a trend day could develop

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  2. Sooz

    not sure if i’m in system here..hmm

    I added to that little bastard again this am.
    not so pretty but hey..no complaints YoY.
    (sorry for your pain here, Sir Raul..feeling bad about it [email protected] it!!!)
    liquidating some green(spec),here this morn. Many still working in the ‘Grand Scheme’ of things.
    Patience..
    I have absolutely no problem with draw downs but also have a pretty big cushion for slight give back.

    Thanks, as always, for all your input here..it’s a beautiful thing!!!

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  3. Sooz

    so..I guess that I am still able to post..very good.

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  4. Sooz

    oh umm..
    Filled at $2.4698

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  5. Sooz

    more like a wayward child, at the moment, rather than a bastard child..

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    • raul

      she’s going to turn the bed, it’s been quiet over there. Like you said, the stock is up 300% YTD, digestion may take quite a bit longer

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