It has been an interesting session thus far in the S&P futures, where we’ve seen strong volume overnight and near the open but since then it has dropped off significantly. However, the market has found accumulating buyers after a reactive-type rejection at 1624.75, which is only one handle above the initial breakout point from the post 4th of July rally.
As of this update, the momentum has made a slight turn in the favor of the bulls intraday, and we’re working through the wide value area established yesterday. A full rotation of the value area would take price to 1639.25 which also marks the VPOC of the last 36 hours of activity. It’s a logical bull target.
Downside risk increases if we lose today’s lows, and especially if we see the market accepting trade below 1623.75.
I’ve highlighted a few possible scenarios on the following 24 hour market profile chart and noted potential areas of opportunity on the RTH profiles:Twitter