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

Hunkering in...

Today, I took the day off to tend to some family matters.   The following is a post day review of some of what went down.

On the big picture front, Trump is continuing to pick out his cabinet and pundits are making forecasts....

MP ACTION

• NQ IS DEMONSTRATING A RELUCTANCE TO REMAIN IN THE SWAMP
• YET NQ IS DEMONSTRATING THE BARNACLE ISLAND AS HEAVY RESISTANCE
• ES IS APPEARING TO FILL IN THE LVA BETWEEN POC #3 & #4

ES SPENT THE DAY FILLING IN THE NARROW LVA BETWEEN POC #3 & POC #4

NQ SPENT THE ENTIRE DAY FILLING IN THE LVA BENEATH THE BARNACLE ISLAND POC

VOLUME ACTION

• EOD VOLUME AT PRE ELECTION LEVELS

VOLUME ACTION - 10 DAY OBV SHOWS INCREASING LONG POSITIONS

PRICE ACTION

• (BREAKOUT ALERT) ES INSIDE ACTION
• (BREAKOUT ALERT) NQ STAIRSTEPS ONE LEVEL HIGH

I believe we are in a hunkering in period

Commitment of Traders

ES

• Fascinating….   Entering into the elections, practically everybody was flat
• Immediately after the elections, Asset Managers Bought and the Dealers unloaded

NQ

• Large speculators continuing to go long
• Dealers continually selling (towards the top)