The first profile characteristic of note is yesterday’s neutral session, where we saw range extension on both sides of the initial balance (first hour of trade) and how this type of profile often shows up near inflection points.
The overnight market was balanced out up until 7:45am when a burst of buy orders pressed the market over yesterday’s high of 1601.25. On the upside, the only profile I’m displaying is from 06/20, above which a large gap exists.
This week continues to bring a series of higher highs and lows giving us upside momentum, this is occurring amidst a corrective market so we want to keep in mind where the buy side action may fizzle out. The initial probe into the above gap starting at 1609, the high from 06/20, should be monitored closely for signs of an aggressive sell reaction.
I’ve noted this level and other important levels on the following profile chart:
