The overnight market continues to be corrective and volatile, swinging the S&P futures around 20 handles.
The key price zone above today is 1579.25 – 1580.25 which marks yesterday’s high and the value area low of the major distribution printed last week. If price gains acceptance above this level, the probability increases of us working our way through to the other side of value, up to 1589.50. In between these prices we have a thick VPOC at 1584.25 which will may slow the market.
I’ve split yesterday’s profile into the two occurring events, first the early long liquidation, printing a b-shape, then the short covering rally. The sellers were finally met by a force greater than their own at this point and an auction higher began. Price gave up the progress late afternoon but still held above the VAH at 1564.25. This level as well as other levels I’ll be judging sentiment from are noted in the following profile chart:
