One of the joys with mapping and tracking balance is you come to moments in the market where then hunt is nearly complete. Throughout this week, we have been tracking our intermediate timeframe control because it was a very visible development which merited our attention. We know the long term timeframe is controlled by the buyer, but intermediate term has been in a state of balance spanning back to February 13th. The intermediate term continues to be in balance, as we are at the upper extreme. From here, we can either launch into space, or fall victim to constant force of gravity which would lurch us back to the mean. This is indeed an elevated risk environment. I have highlighted the intermediate term balance on the following volume profile chart:
The short term is controlled by the buyer. We successfully tested lower yesterday and once the market found a solid bid it went on an exploration higher. The result was a new swing high and value migrating just a bit higher. Value has not yet made a new swing high, though, which is a point we set on 02/24 right at 3700. Big round numbers tend to behave in a unique manner, 3700 is no exception. It is my pivot for intraday action today. I have made some short term observations and envisioned a few scenarios on the following market profile chart of the NASDAQ composite:
Finally, I think it is even more important today to watch the lagging S&P 500, which has significantly more room to run higher, in the short term. A key component of this occurring will be strength in the transports and financials. I have made a few short term observations of the SPX on the following market profile chart:
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