12:12 pm EDT: So far, the ES keeps making new nominal highs and VWAP is acting as support. It has, however, reached the very upper end of its long term trend channel, and the low volatility meltup could continue until the 1135 objective is reached. The danger with shorts is that there has been very little selling today. Until VWAP acts as resistance, we’re not excited about shorts. FOMC minutes at 2:00 pm could provide a bit of movement, but nothing major is expected.
Update 4:39 pm: See comments below.
Click for larger image.
sdg
on January 6 2010 at 16:30:18
After looking at the volume profile chart on the 135 min combined session posted this morning, I created the same chart with trend. A casual look at that chart revealed that if the trend changed overnight there is a high certainty that the day session will trade in the direction of the newly established trend.This information is worth researching but I am not a computer geek.
Bob English
on January 6 2010 at 17:38:42
You can know even sooner. A close below the day’s value area has been a recent heads up there will probably be downside overnight and maybe the next day. Value area is daily pivots, closing VWAP and the previous day’s high volume level. Sometimes a day will have multiple high volume levels, so I use the one closest to the others. I edited the above post to show a picture I was planning on making a post out of in the future.