Earlier this morning on my twitter handle I had tweeted that the onus lay on the seller to move price lower failing which we would see price float higher.
Ever since this rally began on expiry day, we have been watching for signs to show that the seller would be showing up. These can be easily seen in the market activity either through a range extension below IB which goes to meet it's objective at 2IB or a move below the POC of the previous day and by extension the value area low.
The past 200 points we have seen neither. But as pointed out in the afternoon post on the composite profile, we have now reached a point where the market would not look very kindly at new buyers at these levels.
Today's profile confirmed the same as buyers stayed off despite a strong open and sellers lacked the aggression to move price lower. The result was a status quo and a short thick profile which will provide an excellent trade opportunity for tomorrow's trading.
Our focus will be the Open type, The IB developing and the range extension.
An exit of value and range is the way to trade tomorrow.