Futures are modestly higher and the overnight profile shows signs of a possible roll higher, but certainly lacks the symmetry of a balanced session.
Typically, we see the market digest a big directional day by setting up value near the prior day’s close in an orderly fashion. Considering the precarious position yesterday’s action put us in, I’m prepared for a quiet day or perhaps a day a violent indecision. I would consider the former to be more challenging to trade.
Note: I’ve split yesterday’s action into its two key components, the selloff and the violent D-shaped distribution.
I’ve also notated the volume profile chart below with clues to the gap existing below and how it may play out as support.
In my brief time using volume profiles, I have found that when price tries to gain entry to the void, is often when it is faced with the greatest resistance.
That said, that is a mighty large void highlighted above.
I remember several people being certain we would close it sooner than later…I wonder what their May performance was?
However, I suppose today is sooner than later…
I need to learn how to use point and figure charts. Enjoying your analysis and blog posts.
glad you enjoy fine sir, but these are market profile charts…not PnF
Damn. Stupid question. Are market profile charts mostly used for futures trading?
It’s okay, how else does one learn?
I haven’t found them for stocks yet, but many use big weekly composites of the volume at price in a very similar way.