A simple price check of the S&P futures via your favorite electronic device may give you the impression the market has weakened overnight. However, when you frame the overnight auction in the context of our recent profile developments, you’ll see the market is still stuck between two large value humps and working at filling in the cave.
Market profiles are quirky characters that insist on adhering to the familiar bell-shaped distribution. It’s nature, really. For the most part, we can play along with these formations to build context into our trading.
The momentum ball is still in the seller’s court but the bulls did a decent job of stalling their progress yesterday. My initial expectation is to stay stuck in between the two value humps highlighted below until we get some Fed talk to move the market.
I’ve highlighted a few scenarios in the following profile charts, as well as marked up the relevant price levels on the RTH chart:
Thanks for the continued insights. As a visual learner, those distribution charts you post are really helpful
Im glad they benefit you. I though today’s was kind of silly because for all intents and purposes those three scenarios say, “I have no idea what the hell direction we’re going.”