What was interesting coming into trade yesterday morning was the largely impressive and vastly under the radar strength in the Euro dollar which we observed via the 6E contract. The euro is sitting at multi-year resistance which many macro funds are leaning on and it went on a full out rout higher.
Then our markets did, too.
Regarding news flow, the strength in the indices marks a victory for Washington DC. And precious metals ripped yesterday too, so everyone enjoyed some cake in a rather hedonistic manner.
Market strength continued overnight with one the bigger drivers being the strong earnings out of Google. It makes sense to pay attention to the market’s reaction to the market’s reaction of this positive news.
As of this writing, the market is digesting near the highs, the /ES has a measured move target of 1734.50.
Yesterday’s profile has the toothy characteristics of a trend day, where volume (value) follows the price higher. I have highlighted the volume zones I will be observing today as well as a few potential scenarios on the following market profile charts:
