As noted in Fri’s analysis, focus on response to 44.50s-45.50s, was key in Mon’s auction as early Globex selling toward the Major Structural Support encountered buying interest, driving price toward 46.40s. Focus on response to the Demand Cluster, 45s-44.50s into Tue’s auction.
Noted here was the formation of the Structural Buying Tail during the Globex session following the auction/probe of the Major Structural Stopping Point Low, 44.60s, from 13Jan. Additionally, following the formation of the Buying Tail, the Globex session became D shaped, implying the potential for directional activity. Initiative Buy Programs (IBP) entered at/near 45s, driving price higher toward 45.80s, one of the initial upside targets provided.
Noted here was the development of Balance at/near 45.80s, the initial upside reference before more Initiative Buy Programs (IBP) entered at/near 45.85s, driving price higher achieving a buyside order flow momentum extreme at/near 46.10s. As noted, price extremes usually follow momentum extremes and this probability path did in fact play out into the NY auction up to 46.40s.