I just selected the ES contract as its the big daddy in terms of volume.
You can see in the last leg higher on the first image that the value areas are quite overlapping, its like bracket then trend, with a couple of breakaway gaps. The decline that followed had to navigate back through all those agreed value areas. You can see the value areas were stacked and overlapped.
This last leg higher has seen many longer value areas, thin areas on the profiles where little volume was done, and the last thrust higher has not been as overlapping. Now we are in a bracket.
Now usually as a trend ages the value areas overlap each other more and more. So I'm not saying that this trend is aging, but what i am pointing out at the moment is:
1.) we have started to bracket again at the highs (good opportunity)
2.) if we see a rotation back through the recent value areas it could be a swift rotation to the last solid value area around 1700
A couple of things need to happen before i start getting too bearish though.
a. We need to see an "excess high", an area where higher prices are rejected. Currently we have poor highs in place, looking like this auction is not finished yet. For an excess high we need to see sellers initiate new positions on the highs in size and volume. Longer time frame participants. This has not happened yet so i still expect the highs to be retested until that happens.
b. We need a significant period of bracketing at the highs before a significant rotation lower can happen IMO
Anyway, I've been watching with keen interest as the volume has dried up on several European indices, as Kid mentions as well. We are at the top of a large channel on the ES daily as well.
I'd like to see how this current bracket plays out, should be some opportunities here for now, but be alert for a quick test lower before we auction allot higher,