So far as of 8 am we have had two range extensions to the upside in B and C period. The IB was 38.25 points, we opened with some overnight longs and a gap to the upside that was closed very quickly early on. The POC is at 3828.50.
Price tested down to 3810.75 which was not the overnight low but below yesterday’s settlement. The overnight low was at 3800. On the upside, we are currently resting at the POC from 11/2 FOMC day and 3850 which is also a major inflection point.
9 am POC moved up to 3838.50, another range extension to the upside in D and E period. The high of the day so far is 3867.
9:30 am POC is now at 3856.50, another increase. Price seems to be resting at this level. We have no clear signal in either direction. A further range extension to the upside is possible but price might also come back down. However, it is unlikely the single prints from earlier will be touched unless of course new information comes in which on a day like today is a possibility.
At 11:30 we have traveled through OPEN and are now at the overnight low of 3800. We have one range extension to the downside now in J period.
11:48 am POC back down to 3823.50! Price went past the 3800 mark and established a new low at 3793.
12:50 pm and the POC is up to 3828.50 again!
What an emotional trading day! Settlement is at 3835.25 and 20 points higher compared to Monday, yesterday.
That is the third day in a row that we are establishing value higher:
Compared to yesterday, we are establishing value higher. The POC moved up and down all day. The extremes were the best trade locations.
Here is where price rested for a while at the upper extreme for 1.5 hours. It was not obvious price would come back down. A short at the 50% retracement would have worked. I could have also placed a long if price goes above 3867.25. This trade only emerged after 10 am, so patience is key.
The 11:30 low presents a good opportunity for a long:
Recap Video:
https://vimeo.com/showcase/9964503
Fibonacci Case:
Trade from early in the session. Got in short at 50 % but kicked out at 618, frustrating but also a signal that from that point on we are going upwards. Fibonacci is not the best approach on a range bound trading day, on which news are released that can change the direction of price.
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