Approaching Thin Air

SUMMARY

- Price is grinding higher and entering "thin air" altitudes, where price action has historically slowed down

MP ACTION - ES

ES PRICE ON THE NORTH SIDE OF POC 34 (THIN AIR REGION)

Price action slowing approaching ATH

• Price matched recent globex (-2) high
• Three consecutive trending days

MP ACTION - NQ

NQ PRICE ON THE NORTH SIDE OF THE BARNACLE ISLAND POC

PRICE APPROACHING THIN AIR TERRITORY

PRICE APPROACHING ELECTION NIGHT HIGHS

VOLUME ACTION

• 

  • EOD VOLUME DROPPING TO PRE-ELECTION LEVELS
  • NOT SEEING AN ATTACK ON ATH WITH INCREASING EOD VOLUME

VOLUME/PRICE ACTION - 1 DAY VIEW

• WHAT WOULD’VE BEEN A GOOD OBV DAY ENDED WEIRD ON THE ES

• EOD SELLOFF IN ES BROUGHT PRICE OBV TO ALMOST NET ZERO
• HOW DID PRICE NOT DROP?
• WATCH FOR ES PRICE TO COLLAPSE IN THIS THIN AIR REGION?

VOLUME/PRICE ACTION - 90 DAY VIEW

• UPTURN AFTER THE ELECTION OF OBV READING
• ES OBV STILL NEGATIVE AS PRICE HEADS INTO THIN AIR TERRITORY (HEDGES)
• NQ OBV NEAR NEUTRAL HEADING INTO THIN AIR TERRITORY

RULING REASONS

- The EOD selloff in the ES is curious - Will these high's hold?

- Price action is slowing down as the ES approaches all time highs with trading volume declining to pre election levels.

- The NQ appears to be happy filling in support inside of low volume areas

- Great swing trading behavior

- 3 days into trend (watch for trend to continue and Step 2/3/4 action