There was a strong appetite for risk over the holiday trade, which saw prices of the NASDAQ outpacing the performance of the S&P. The action slowed a bit over these last 8-10 hours and the resulting profile print has a very familiar, uncompleted, shelf footprint.
By vision for today is a completing of the profile via some back-and-fill trade. However, we are set to gap much higher, which signals the market is well out of balance. If we fail to hold around the high volume node at 3476 it may signal a rejection of the holiday move by the market. If this is the case, we may see a swift gap fill back down to 3469.
Conversely, the shelf at 3476 may not breach in which case price will continue to probe higher in search for sellers.
The shelf is an interesting bit of context to bring into today’s trade. Even the casual observer, hunting black Friday deals can use the price action around the 3481 shelf zone to measure sentiment.
I have highlighted this activity on the following market profile charts:
