The weather in Michigan has reached the short stretch where it becomes sublime and you’re flooded with memories of what make the murder mitten a great place. I watered my new cement, one of the joys of home ownership. Imagine that, desert troglodytes. I’m surrounded by fresh water, splash.
Cement is a great foundation for building upon. For weeks after you pour it, the cement continues to cure underneath the hard surface. Cooling it off with water promotes a more solid cure and whiter concrete.
I could go on about fresh concrete for hours, I love infrastructure. But instead turn your attention to these profiles building up in the S&P. My game was thrown off over the weekend, and important work was neglected. The profiles needed to be chopped and screwed going back to late-May to give us an idea of what’s going on above and where we may expect to encounter resistance. There’s lots of really interesting stuff going on, but I want you to pay particularly close attention to the following features of the profile chart:
Look at the profile NAILING the RTH high today
Look at the layers of support properly formed and lain below, like good concrete
Look at the OPEN AIR from 1649 to 1661
You better click this one and keep it open on a new tab
The red dotted line at today’s high represents the value area high from the calm morning of 5/30, just before all hell broke loose and a one direction (no homo) move to our recent swing lows occurred. The green dotted line is the 05/30 VPOC. Curious, yes? That we’ve set value in near perfect alignment with this singular event?
Buy orders brought us back here this morning, that’s what today’s P-shape profile suggests. They came to market early to initiate new longs, or perhaps it was short covering. Either way the buy pressure abated and/or was met with enough selling pressure to end upside progress for the remainder of the session. But, not enough to press lower. You still with me? Because none of this matters too much. All that really matters is The Fed.
But we’re here, at a critical juncture, the market will tip its hand, but a tip higher has to simply levitate, as where a missile lower has to carry grade USA bunker-busting power. Place your bets…
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