No change to the Monthly or Weekly Trend as described in my last blog post. The long term trend remains up and balancing. The weekly trend is down. The Daily Trend (see chart below) has turned to the upside not only in the S&Ps but in the Nasdaq and Dow as well. What we have witnessed the last couple of days is short covering with price re-entering the the upper Balance area. Continued acceptance within this Balance targets the large Gap above. Remember Gaps are a form of Excess. Large Gaps such as these usually take a 2-3 attempts to fill. Odds are that we see a quick rejection on the first probe back into the Gap. I am using 1669-71 as resistance.
Lets look at the Profiles below for a plan for Monday. First, notice that the while we closed on the lows between last Friday (8/16/13) and Wed this week, the POC never migrated lower with price. This suggests that the market got too short on a daily basis and by Wed a short trap was set. Traders were short in the hole with the Wed overnite session low at 1631.50 not providing much needed follow thru to the downside. We opened Thursday at Wed's POC and 1-timeframed up for the rest of the session. This is a market profile pattern that is seen quite often and if recognized early can be a very high odds play.
For Monday, our best reference is the late day Spike and the prominent POC around the 1657-58 area - see chart below. Opening and staying within/above the Spike is positive and suggests further upside continuation. Friday's POC is prominent and should provide support for any probe below the base of the Spike. If we get much below Friday's POC - the next level of support is the 1650 area.
Lets look at the Profiles below for a plan for Monday. First, notice that the while we closed on the lows between last Friday (8/16/13) and Wed this week, the POC never migrated lower with price. This suggests that the market got too short on a daily basis and by Wed a short trap was set. Traders were short in the hole with the Wed overnite session low at 1631.50 not providing much needed follow thru to the downside. We opened Thursday at Wed's POC and 1-timeframed up for the rest of the session. This is a market profile pattern that is seen quite often and if recognized early can be a very high odds play.
For Monday, our best reference is the late day Spike and the prominent POC around the 1657-58 area - see chart below. Opening and staying within/above the Spike is positive and suggests further upside continuation. Friday's POC is prominent and should provide support for any probe below the base of the Spike. If we get much below Friday's POC - the next level of support is the 1650 area.
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