gm and happy Democrats’ day, lol.

Previous Day’s Recap

Yesterday was a day dominated by the election, as highlighted in my weekly article. Democrats have won control of Congress, according to AP’s reporting.

Buyers dominated most of the day. The rotation scenario played out yesterday, while the downside scenario followed today, 4/11, when the weak low was taken out. Yesterday’s high was poor, while the low was weak. The profile structure was balanced, with value built in the middle of the profile range.

Today’s Opening

The market opened close to the previous day’s value area high. During the first four TPO sessions, the market one timeframed lower, taking out the previous day’s low, repairing the 18/09 and 17/09 lows, and revisiting the 16/09 prominent POC.

Buyers responded by defending the 75K - 75.5K range, as discussed in my weekly article. They(buyers) drove price back to 78K, taking out the previous day’s poor high.

Profile Structure

The current market profile structure is elongated and healthy, with good excess at the low. At the moment, I would say the market has completed most of its business on the downside, and maybe the focus is now on the upside. However, it remains to be seen whether the current high is strong. The buying looks like short covering, and without a strong rally supported by new money, the move could remain weak going forward. The current high is weak, trading one tick above the 15/09 high. I’m keeping an eye on the POC area and where value is developing.

Market Generated Information

2/11 poor high.

Current Developing Profile MGI

4/11 weak high.

4/11 single prints.

Possible Scenarios

The market is currently building value around the 15/09 high and above the previous day’s value area high.

Scenario 1

If the 15/09 high holds as resistance, I expect a rotation down toward the POC area, taking out the single prints formed.

Scenario 2

If the 15/09 high fails to hold as resistance, my target will be the 30/10 poor high. If price finds acceptance above that level, the next target will be the 29/10 prominent POC. If price gets rejected at the 30/10 poor high, I expect a rotation back into the current value area.