Good Morning all.
The market is trying to find value between 5225 and 5271 this morning.
Let’s see how this plays out.
@ Manu,@ All,
My views on the blog are for intra-day based on market profile levels with no prejudice towards long or short before the open price.
I can take a long view one day and a short for intra next day, based on the info the market gives me.Sometimes I look at the preceding day ( days) activity to arrive at a better judgement.
Somedays I may not have a view at all.
Viren is more of a positional player nowadays and he carries his positions for weeks if not days.I’ll ask him to be clearer with his time-frame next time.
Hope I’m clear on this.
This move above 5271 has caught me napping, to say the least.
Un-accounted would be a right word to use in my case.
I’m staying away from commenting as I am unsure at the moment.
In retrospect, 5225 seems to have been a good place to initiate longs.
I had blogged about that level in my post on Monday morning here.
I am watching the close today and the activity between now and the close.
To me it is a normal variation day, which is a sign of continuity the next day if we hold on to the prices here. Also the open tomorrow should be about here and more.
Secondly, by moving above 5271 prices will show a rejection of lower print and get back into the bracket we have known all last week.
So let’s see where we close today and take it from there.
A quick look at the ES futures shows them at 1039 now and close to the yearly lows at 1036 of the July contract.
In fact the yearly low was 1032.75 in the september contract which has been re-printed today.A break of that level can set it up easily for 1000 to be printed.
Quite a bit of divergence then, they at yearly lows we near yearly highs.
Either they rally or we fall.
The divergence cannot prevail.
For more clarity on inter-market relationships check this post here and here