We are opening with a Gap to the upside today. Overnight price action was strong to the upside starting 00:30 am, after London open. OPEN is at 3990.50. If the Gap closes, higher prices are rejected. The Gap was closed within the first 30 min. We then fell into a sideways movement with three range extensions to the downside. The low came at 3942.50 close to overnight low and POC from yesterday at 9:25 am. Price recovered more than 50% and went all the way up to 3982.75 at 12:50pm. Settlement was at 3974. The IB was 36 points high, the range for the whole day was only 49.25. The high of the day remained in A period at 3991.75. POC was at 3959.50 for the day.
The following TPO chart exemplifies how balanced the day was after A period ended. This balance was not upset until a breakout to the upside in M period.
Weekly:
We are trading in a balance area the last 6 days, since the last strong up move on CPI day on 11/10. The low of the balance area is defined by the POC from CPI day (11/10). 3912.50 is now the low for last week. To the upside, we have a high at 4038.75 during regular trading hours and a higher high at 4050.75 during overnight trading.
Week ahead: Nordstrom Earnings at 1 pm on 11/22 Tuesday and BestBuy at 5 am that same day. Two major retailers whose earnings will reflect consumer spending for the last quarter. FOMC minutes will be released on 11 am Wednesday. Volume will be thin due to the Thanksgiving holiday, which might make it easier to upset the balance we established. Black Friday will also be watched closely to monitor consumer spending
First trade idea:
Footprint chart was slow, but we had green candles until, then speed of tape and the red candles and one small retracement to 50% which I did not take.
Video to this trade:
Video:
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