[TinGull]

Where are we heading? Here are my thoughts

Yesterday we saw a fairly balanced day with strong selling in the morning, nice buying later on, and a small selloff in the close. Was the buying responsive buying, or simply some short covering? On the chart, it's a little difficult to tell. We'll see how things act today. Looking at premarket...seems like some short covering, as we're really heading lower right now.

What areas to trade? Notice the 540 area. VAH from yesterday, VAL from 1/3 and 12/29 (at around 543). This will be a tough nut to crack. We're currently printing below the POC, with a TPO count from yesterday at 247/287, strongly favoring the sellers. Looking at the TPO count into the close is usually a good indication of where tomorrow is going to lead. For instance, on 12/27 we had a big TPO count favoring the sellers...and then the 29th and 2nd of Jan started our journey downwards. With that in mind, you knew where to look for trades. Yesterday really favored the sellers, and it's very evident pre-market.

Another area to watch for...471. This area was the LOD yesterday and on the 3rd. Next stop...458. Naked POC from 12/26. Then there's a big area of congestion at 430-440.

So...overall...I'm looking to initiate shorts at 530ish, and be ready to cover around 471, possibly lower.

Here's a chart for candy.

[TinGull]

Also...if the news kicks the market down more...I'll look for initiating a short around 490ish, VAL from yesterday. Today's definitely a shorting day it's feeling like.

[TinGull]

Premarket....interesting to note where the YM found resistance....right below 540. Ah...powerful tools that are ages old. I love it.

[TinGull]

And coming into the end of the day...triple digit losses. "b" shaped profile telling us the other time frame sellers are in force, and lower value placement...all showing us that a nice move is getting underway. This week was pretty heavy, so I wouldn't be suprised to see some short coverings next week as people lock in some short sided gains.

As for now...may the power of the profile be with you!