Here are the profiles from 23rd May
The markets have worked the extremes of this bracket from 23rd May in a 5 up, 4 down and 3 up set up.
We are back at the bracket highs with the move which started late yesterday afternoon showing signs of exhaustion in the shortest hourly time frame.From the lows of 4830 witnessed yesterday afternoon around 2.30, we have seen a climb of nearly 160 points in the Nifty. The SPX futures have also put in about 30 points from the lows seen yesterday at 1270 and are currently at 1300 at the time of this post.
Clearly globex is up ahead of the ECB announcement later today and the headline risk is such that these markets could be up/ down another 2 % by the open tomorrow.
Such news driven markets are best traded out of balance with a move above value setting up a high potential trade.
In each of those 12 trading days shown above an exit of value would have given excellent trading opportunities.From the 23rd, the first five days gave moves above value high, the next 4 days below value low and the last there days above value high again.
If you know where the market established value yesterday, it's easy to walk into the market with a bias and make a directional call.
The value areas are uploaded daily in the Futures daily notes on the Today page tab.