The buyers got a bit ahead of themselves early yesterday afternoon when they pressed prices up through the highs. Once doing so, they uncovered a strong responsive seller who patiently let price come to her and then erased over 20 points of progress in the final 30 minutes of trade lasting from 3:45-4:15pm. That pulse of selling carried over into the overnight session where the brief pop in prices after weaker-than-expected Chinese PMI data was faded and prices continued drifting lower. On our economic radar for today’s trade is ISM Non-manufacturing composite at 10am as well as Factory orders at the same time.
The intermediate timeframe is spreading out like discovery is taking place, but as a pile of volume-at-price it still resembles balance. The balance we can observe dates back to the start of July, has a low slung VPOC just below our current prices, and we are currently muddling through the thick value zone. I have highlighted the key price levels below which will serve as sign posts as the story unfolds:
You can see the intense indecision on yesterday’s market profile which has long tails on both sides of value. This is the nature of a neutral day which has a real lack of directional conviction. I have noted the price levels I will be watching early on below:Twitter