Good morning, and welcome, everyone.

Yesterday’s PPI news really softened the large negative impact CPI had on the market, as buyers quickly bought the uncertainty out of yesterday’s dip, lol. They pushed price back to the $82K to $82.5K range, taking out the 14/10 single print area, which had been acting as my resistance, and finding acceptance inside the 14/10 value area.

The previous day’s value area overlapped the lower relative value area of 14/10. The high was a poor high, while the low was a good low. The POC area didn’t migrate with price as price moved higher, and the overall confidence of the previous day was low.

Possible scenario 2 played out, as written in my previous day’s analysis.

Today’s opening

The market opened close to the previous day’s value area high and one-timeframed higher, but failed to take out the previous day’s high and reversed. At the time of writing, the market is moving in a choppy range, although I expect today to be a wide rotational day.

Profile structure

The current profile structure is balanced. The high is a poor high, while the low is a weak low sitting exactly at 28/08 high.

The POC area is in the middle of the profile, as neither buyers nor sellers are showing dominance at the moment. The current market confidence is low.

Market-generated information since the beginning of the week

  • 12/10: Poor high that needs to be repaired.

  • 13/10: Poor high that needs to be repaired.

  • 14/10: Weak high that needs to be repaired.

  • 15/10: Poor high that needs to be repaired.

  • 15/10: Wide POC area that needs to be revisited.

Current developing profile

  • 16/10: Poor high that needs to be repaired.

  • 16/10: Weak low that needs to be repaired.

Possible scenarios

My dominant concern days have passed, although sellers are still much more active than buyers at the moment. Buyers were able to push price back into the $81.5K to $82.5K range, so these are the possible scenarios I’m watching today.

Scenario 1

If the current low holds, I expect a move above the previous day’s poor high, with targets at the 5L/2026 high and 25/09 low.

Scenario 2

If the weak low fails to hold, my downside targets will be the 4/09 high and the previous day’s POC area.