January 05 - market prep & review

- we were trading in a balance area between 1245.75 - 1258.50 for 8 days (21 dec - 31 dec)

- on January 03 we opened gap up, above BA

- on Jan 04 they tried to fill the gap, but they failed by few ticks, creating a bullish sentiment and confirming that BAH@1258.50 is a strong S for now, also a level to watch for any move back into that previous BA and eventually lower

- even if on Jan 04 the value was created lower, was accepted above BA; by combining the 03 and 04 profiles we have a new VA and a new trading range

- ON action on January 05 find S on the same BAH, and aided by some positive econ news developed in an up day, extending the newly trading range to the upside, making new highs for the year.

- we can see how in premarket we traded between 1257.75 and 1262.50 (2 POC's from ON activity); it formed a small BA in A, B & C and then the price took off from that BA, classic application of the BA rules

- open in range and VAL (suggesting that if we don't trade quick out of yesterday's range and build acceptance lower, the odds are that we'll trade to the opposite end on that range, and thats what happened)

- VA of the composite profiles of previous BA held as a S with POC@1252.75 (important level as S)

- we are trading in a new trading range, BA between 1258.25-1273.75; the BA rules applies

- today it formed a P shape, suggesting short covering rally?? or new buyers coming in?? we'll see in the days to come...

- VA migrated higher on the day profile and on the 3 days BA

- from todays profile:

- singles between 1267.25-1269.25 as S area, with 1267.25 as S with odds of responsive buyers being present (LVN)

- POC & VPOC migrated higher with price

- we have a shy selling tail at the top and buying tail at the bottom

- we have a NPOC@1254.00 from 12.31

- for tomorrow I'll apply the BA rules, but I have to gather more info from the ON action and an trading plan will be outlined in the morning