Gap Down and Balance

Our high alert stance based mostly upon so many diverged and weak sectors during yesterday's grind higher was dead on,  as a gap lower printed today.

But the relentless responsive buyers were all set to go as the morning balance gave way to an afternoon session around the PIVOT.

That and yet another 12:00 VWAP reversal!

Probably good to go for an upside test for tomorrow, as a few weak hands have been rinsed.

The 5 minute structure tonight really great!

High Alert

Yet another classic bull market grinder higher that even featured a perfect VWAP reversal -- shocker, right?

What felt different about today was how diverged so many sectors were.

Pace, tempo, volume, it all sucked. These later stage swing higher runs are a sight to behold. Daytrading is not impossible but let's use the word improbable simply because it is just so slow with low-volume.

So we wait for the day when some news comes into the market that brings in the seller or two.

Intraday structure was par for the course. A morning 7 o'clock low with a retest excess tail at 7:30. A subsequent one hour grind higher to R1 and just before 9:00. Where price chopped around in the upper end of the range and closed on the session near highs.

We are on high alert for downside inventory adjustments at this point.

Recap: Morning Reversals

Range: 10 points today.

Since October 30th, this market has produced a look down and meaningful reversal with in the 1st hour and a half of trading.

That is 8 sessions of a very similar pattern playing out.  Sure, each day had it's own nuances, and even some of the days were easy to get run over on (like 11-4).

So we recap of all these sessions, including today which was just Bull-Market- Balance (BMB) and yet another 1st hour perfecto reversal trade.

And today's intra-day action respected key time of days. The 7: 30 low with excess tail a one hour move up to S1 that reversed at 8:30 and subsequently balanced until 11 o'clock. At which point price rotated back down to near lows.

Perfect Textbook Checkmark

Yet another reversal 1st hour an a half.  Only difference today is that they broke the range and it creeped higher into the close.

This huge 2000 zone I still see as vulnerable.  Yet, the expected response is for higher prices and I'll keep buying those morning pullbacks.

Trade of the day is the 7:30 zone excess tail.  Clockwork, baby.

Up But Balance

Gap up morning as the high odds outcome occurred.

But the session just balanced after the morning inventory correction.

This auction is old now and very susceptible to inventory corrections at this point.

That said, after 4 days of balance currently, it could launch into yet another leg higher.

The challenge is to properly trade inventory re-balances in the context of the uptrend.

And then to properly identify a significant move lower unfolding that produces a Big Red -- should it occur.

Buyers Like Lower Prices

As we suspected, a bit of inventory re-balance was in the cards,

But the 8:00 low and gap fill, was bought hard.

And a hybrid checkmark day ensued.

Buyers are very strong.

The expected response is for buyers to hit it higher tomorrow.  That, or continued balance.

Another Minor High

We sort of expected a death-grind-balance-day, and that's just what we got.

Unless something shakes this market up it could do this for days before another volatility expansion finally erupts.

That notwithstanding, there were some good trading opportunities today on the 5 minute if you were able to keep the ADD in check with such low volatility.

So -- today was healthy consolidation for a move higher, or a bearish minor high failure and a range failure probe is in the cards, or we just balance.

As always the market will print a hybrid of any of our scenarios.