I turn dials and fiddle with knobs to hone in on harmonic rotations
Joined Oct 26, 2011
4,080 Blog Posts

Follow Through Turns To Fizzle

The S&P was able to follow through on the strength that entered the market late yesterday afternoon.  Huge volume poured into the market near the bell, pressing us into the upper quadrant and above the VPOC.  Since then the market has fizzled a bit and is mostly trading sideways about 1.5 points above yesterday’s close.

Since gapping lower Sunday evening the market has been slowly climbing back toward Da Vinci’s brush which was the naming we used for the very large value distribution that formed during the second half of last week.  The question now is how we treat this value.  Can we get back inside it and sustain trade for more than an hour?  If yes, there is an 80% probability we will rotate the entire area.  If instead we test 1686.25 and the market sharply rejects price, we may be in store for a more broad based correction.  We may even reject the area initially but find sellers cannot follow through on the rejection but instead run out of gas.  These are three scenarios you must consider when observing a large balance of trade.

Overnight we printed two TPO distributions, but a relatively Gaussian volume distribution suggesting we are finding balance in the marketplace.  We saw a sharp buying tail on Monday morning that bulls do not want to see given up which starts at 1671.  Trading back below that level shows definite weakness from a once otherwise strong buyer.

I have highlighted these levels and a few scenarios on the following market profile charts:


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  1. Sooz

    [email protected] if that’s not a Beautiful move!

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  2. Martin

    Enjoy the RVLT rally

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  3. Sooz

    taking some profit (mm acct)

    Status Filled at $3.92
    Symbol RVLT
    Action Sell
    Order Date 10/01/2013, 01:44:35 PM ET

    remain Long

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  4. Sooz

    this is a shout to the lame a$$ comments of Mr. Goldsocks over on ST..in regards to JOEZ
    Yup, Pal, feeling certain you’ll be the first one to pound your chest when it hits dbl..but have loved to bash it since your buy..no sh!t!!
    Give me a break..
    You and your partner will be made whole soon so maybe you should sell that POS, as you like to refer to it, the moment this happens..

    Update..last ins/cost avg up here (posted entry here 1.03..+15.53%..this morning session)
    my cost avg is well below a buck w/ nice size accum/add back.

    sorry it hasn’t garnered the win you had hoped for..blah!

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