The Emini S&P continued the selling that began yesterday after the failed bullish breakout on the Weekly Profile, in the opening and early morning of the session. Then around 11:25 am pst the ESH13 found support at the 1495 price area which was MS3 to the tick on the Daily Profile. The ES at that time failed to extend the bearish downtrend on the Daily Profile, which suggest to look for buys and to expect the market to revert back to the Zone-Trader Pivot. The ES did revert right back to the POC or ZT Pivot at 1503.50 just like clockwork and the became balance on the day. Once the market becomes balanced on any of the 5 profiles it must then attempt to make another breakout. On the Daily Profile the ESH13 made one more attempt at a bearish breakout and failed, as it did not close below the midpoint between MS1 and MS2 suggesting to continue to buy and this market was going higher. This signal on the Daily Profile confirmed the Monthly Analysis and set us up for a nice long trade which can be held overnight depending on the trader.
The Monthly Profile was making the first retrace after a Bullish Breakout and we expect to see support around the Zone-Trader Pivot at 1500.50 as well as the midpoint of the Persistence Zone at 1498.75 and one more support at the midpoint between the ZT Pivot and MS1 which is 1495.50 and the bottom of the balanced oscillation area. With 3 strong support in one price area and the Daily Profile failing to continue to the downside and signaling buys and a revert to the ZT Pivot we expected this to be the beginning of the 2nd Wave on the Monthly Profile which is the Bullish Confirmation Wave. Text book signals on both the Monthly and the Daily Profile, especially since the Bulls are in control of the market on the month there is very high percentage that the midpoint of the PZ will hold initial support. Picture of the Monthly Profile is below. Please keep in mind the Zone-Trader Philosophy is an intuitive based trading methodology that captures the underlying psychology of the market on 5 different time frames. The method utilizes rule based entries that are derived by combining price action with the specific rule within is specific zone. The Zone-Trader is faster and more frugal then any statistical based system in existence a leading indicator that capture the turns with pinpoint accuracy.
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