ES Wednesday 8-5-15

Good morning to all. Tuesday was an inside day as seen on the chart below. This means that we should be on the lookout for a break out of balance trade or look outside balance and fail trade. We can see the actual numbers of the balance area on the chart and this is something that needs to be our primary focus this morning.

Greenies: 2123.5, 2118.75, 2112.75, 2104.75/2105.5, 2092.5, 2086.75 and 2066.75


Profile: We can see that Tuesday's profile had a nice bell like structure to it while being inside of Monday's range. There is a prominent POC at 2089 and this information needs to be carried forward as these tend to get visited over time and become magnetic. There is a 2 tick excess on the highs which is not the greatest but technically is enough to classify as a good high. Also value on the day was inside that of Monday's so we have some coiling action going on here.



The split profile does not show much except for a lot of back and forth action. It was interesting to me that the close of the day was that weak because days like these with wide POCs tend to close around the fat part of the bell. But that just likely means that there was unfinished business to the upside which is reflected in the O/N action so far.
It should also be noted that the sellers were not really able to break out of Monday's range to the downside inspite of there not being a lot of buyers so that is a bullish sign but we need data to confirm as always.



The O/N trade is 100% long and as of now we would not only open outside YD's range but also outside the balance area (Monday's high). Stay on your toes and keep an eye out for the greenies and react accordingly. Opens on days like these could be volatile. Good luck to all.

gapped open and prices moving away are signs of a strong market

not much of a retracement from the 2104.75 greenie indicates that the market is pretty strong at the moment. likely a day to buy pullbacks rather than try fading

now we are seeing a decent retracement from the greenie. 30 min VPOC @ 2103.5

the greenie band providing a decent fight so far but if/when it gives away, the next greenie at 2112.75 would be in play

Thank you very much for the curving the path. gn