Looking at the Regular Trading Session Daily Bar I see two overlapping Balance Areas. While the S&Ps made a new pit session high, we still have 3 electronic (Globex) highs that have not been tested. It would be very unusual for the market to make an all time rally high in the Globex session.
Coming into the Tuesday pit session, Overnight inventory was short - the market spent most of the day 1-timeframing up except for a pull back in L period at 1462. Following the pullback, the S&Ps repaired the 3 poor highs from last Thursday, Friday and Monday. The 45 degree line suggests that short-term inventory was long at the Close. I am viewing the last 4 days as a Balance Area. The likely scenarios are:
- Remain within Balance.
- Look above (or below) and fail.
- Look above (or below) and accelerate.
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