The overnight market was relatively quiet and balanced and has begun showing early signs of upward momentum. Pair this with the fact that we printed an inside day on the market profile and it suggests a reversal higher may be at hand after a mild drift lower.
To be sure, we’ll need to see price recapture and hold above 1688.75. We’re currently only an earshot away as we approach 8am. Given the small gap present from yesterday’s close however, we may see sellers coming into the market early and attempting to press us back down into the large value area from 07/26.
With a long bias, I want to see the market reject lower prices at the 1682.75 area. Secondary support exists at the VPOC 1680 then the VAL 1678.50.
I’ve presented these thoughts visually via the following market profile chart:
