Open in the prior day's value. If it is not able to trade up very quickly (within 1 hour), then aim for 7150 (VPOC) and 7120 (the VAL)

shrekchenbin 

Yesterday's bullish leg was impressive, but it does not mean that we should automatically ready to buy the story of bullish resumption. If we take a look at yesterday's price action, the structure is quite poor, which

European equities are breaking from the top formation of the last up swing. The head and shoulder's top in CAC is easily identifiable.
Here the neckline stands at 5120. So long as CAC does not stand firmly above 5120, we could look for 5080 and 5040 as first and second targets.

Strong support from the VAH of Tuesday's balance at 5090. IF that level were to give away, look below 5076, the VAL of that day.

This is the value area trading rule.

shrekchenbin 

European equities are breaking from the top formation of the last up swing. The head and shoulder's top in CAC is easily identifiable.

The value area trading finally worked out.
It is not so smooth in Cac as a big hand trader kept on fighting the tape, until his gigantic order gets stopped out.



In contrast, DAX has quickly traded through the value area low of Tuesday in pre-market already. Then the low of the day is traded through half hour into the cash session.

shrekchenbin 

Strong support from the VAH of Tuesday's balance at 5090. IF that level were to give away, look below 5076, the VAL of that day. This is the value area trading rule.

Another fantastic example of value area trading rule. When Pound falls into monday's value area, it has traded through the whole value area before it turned around for real.

NQ has made a balance just below 7200 key level. It is a make or break moment for the bulls.
At this moment, we are going to have a bearish open, if NQ is able to break into the VAL at 7155, then we could see it trade through the whole value area to the upside to test 7200 key level. If it fails at either the VAL or 7200, then it is much the top of the last up swing.

NQ is the weakest of all four indices. The strongest has been the Dow. It might be the case that the operator is dragging the Dow higher while selling the tech. It is my hypothesis at this moment.

Watching the break of this accumulation structure.

It is developing at a slower pace than I expected. But it worked out anyway.

shrekchenbin 

Watching the break of this accumulation structure.

Just two scalp targets. Lack of follow through.

shrekchenbin 

It is developing at a slower pace than I expected. But it worked out anyway.

1. Cac is making a complex correction in a trading range between 5080 and 5180 that has initiated the last down leg. It looks like that it has broken down from this trading range, however, the break has been weak with little follow through to the down side. Hence there are two possibilities going forward 1) it goes down with the US equity after the NY open; 2) the break was merely a false break and it would rip back to take out the supply line creating a inverted head shoulder's pattern.


2. It looks like that the ES is intended to make an inverted head and shoulder's pattern. Because the last down leg into the close felt like a forcing action meant to reach the stops behind 2734 equal lows. That down leg has created a decent excess and during the Asian session, the low was tested once again. To me the down auction is over. I am going to wait patiently for a break of 2750 level to confirm the inverted head shoulder's pattern has been triggered in ES.