Previous Day’s Recap

The selloff continued as sellers remained dominant. The high was poor, while the low was also poor. The POC area looked very prominent. The day was a typical open test drive day.

The POC did not migrate with price as price moved lower, making it a low confidence day. The day closed just below the value area low.

Today’s Opening

The market opened below the previous day’s value area low. During the first TPO session, price traded one tick inside the previous day’s value area but failed to find acceptance there. Since opening, the market has been moving sideways.

Profile Structure

The current profile structure is truncated and balanced, with the POC area in the middle of the profile. The high is poor, while the low is weak. Value is currently building below the 18/09 profile value area low.

Dominant Concern

• 3/11 US midterm elections.

Market Generated Information

• 2/11 poor high.

• 2/11 prominent POC.

Current Developing Profile

• 3/11 poor high.

• 3/11 weak low.

Possible Scenarios

Since the previous day’s low has been repaired and the market is trading below the previous day’s profile range, here are the possible scenarios.

• Scenario 1

If the current weak low holds, I expect a rotation back toward the previous day’s value area low.

• Scenario 2

If the current weak low fails to hold, I expect sellers to extend the current range lower, below the 18/09 low.

further details will be dropped in my TG channel.