As we begin November -the market has come into a 2 week Balance. The lows of this 2 week balance which is 1393-94 area has not been visited in the regular pit session. I don't foresee any major change until after the presidential election results are in - at which point I expect a directional auction away from this balance area.
The regular pit session bar below shows a breakout above a 5-day balance at 1416.75 on Thursday and a subsequent failure on Friday as price re-entered the prior balance and closed on lows resulting in an Outside Day. Given Friday was an Outside Day the odds are high that the market continues in the direction of the Close i.e. lower and targets the 1393-94 area and below that 1387 (see weekly bar above)
Lets look at the Profiles below -
My main reference for Monday is the Spike -
The regular pit session bar below shows a breakout above a 5-day balance at 1416.75 on Thursday and a subsequent failure on Friday as price re-entered the prior balance and closed on lows resulting in an Outside Day. Given Friday was an Outside Day the odds are high that the market continues in the direction of the Close i.e. lower and targets the 1393-94 area and below that 1387 (see weekly bar above)
Lets look at the Profiles below -
My main reference for Monday is the Spike -
- Opening within the spike shows price acceptance and keeps the liquidation break intact;
- Opening and trading below a downward spike reveals that price has not auctioned (probed) low enough to cut off the selling allowing for two-sided trade i.e. the auction is not over.
- The top of the spike - 1415 area is Resistance.
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