The way market structure works is that we get to know in advance the most probable key timing areas and then watch how the market reacts at those timing areas. Last nights 7:00 pm low held and market ground higher but has not tracked that projection super closely. Implications were to look for 7:00 to 8:00 am highs for a downside biased Thrusday to occur. Market seems to have increasing probability that the QE projection (Magenta Line in the chart below). The 5:00 to 6:00 am time window reversed as projected in yesterday's post and is key. Make or break now is 7:00 to 8;00 am.
- If market follows QE projection (magenta line) up then its likely we get follow through during the day to the upside into around 1:00 pm
- If 7:00 to 8:00 am reverses then a weak Thursday day session is likely most probably outcome