Aug 04 Plan

We started the trading month with a gap above 3267, and hence above July’s Balance Areas. Today we saw a balance/rotational type of day with most of the trading inside the Initial Balance Range (3276.50-3292). 

3290 proved to be an excellent resistance level. Since a TPO profile is composed of 30 minute periods, I tend to look at the auctions from a 30 minute perspective. If you notice, there were only two periods that closed clearly above 3290. Moving forward, finding acceptance above 3267 is a bullish sign. Stronger buyers should migrate value above 3290 and go to 3331. Once above 3290, what you want to look for is responsive buyers at the 3290 area, this would confirm that the market will continue to grind higher. 

We are now trading between two gaps. I think that there are buyers waiting for a pullback to join the rally. I would like to see how buyers react if the gap below is filled and we test the 3267 area.  Failure to find responsive buyers would take us back inside July’s range, and we could see more long liquidation since this would be considered a “look above and fail”. 

I said on yesterday’s plan that I wanted to see NQ_F make a new all time high. The index made a new ATH but not by much. Going forward, if it stays above 11,070.00, the next level of interest would be around 11,320.00.

As for the Russell 2000, it has yet to break above its Balance Area. I believe that once the buyers can take care of the sellers at 1503 and migrate value above it it should go to the important 1537 level. This would be a great boost in confidence to buyers in all indices, especially it would help ES_F bulls gain some traction above 3290. As always, very grateful for the support and feedback. Wish you all good luck tomorrow!