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:
1639.25 – Done
Done – means we will go lower from here ?
No Tom, it means the target was achieved.
We’ve now rotated lower off the target and we are getting the first sentiment test of bull momentum.
We want to see buyers defending from 1634.50 to 1632.25. Especially 1632.25, where we want to see a ‘hot plate’ type reaction if tested where, the buyers quickly reject price away from this area
Thanks. I’m sitting sideline so far to see where it goes. Tempting to buy though.