I have stitched together the last eight days of market profile in the /NQ_F, the electronic futures contract representing the NASDAQ 100. Before doing so, I went through the price action and separated the profiles in to the proper distributions. The resulting picture is an informative piece which we can use to measure future inflection points against and also analyze real time.
Given the macro nature of market activity recently, I decided to use the 24-hour profiles in this representation because I feel it shows the true auction taking place as money sloshes around the globe around the clock.
I have noted the observations I deemed significant, and the subtle shifts in sentiment leading up to the rally. Do you see anything that interests you? Click and enlarge this one, it is pretty huge:
I was noticing a lot of “P” or “F” shaped profiles…then I saw your annotation. I take this to mean that the market continues to find “value” in the upper end of these trading ranges. 2/10 and 2/11 are more Gaussian in appearance. I have no idea what that means…merely an observation.
P-shape profiles signal an aggressive entry by buyers which created a dynamic move that sellers were unable to recapture. At the same time, buyers merely sat put instead of continuing to initiate buys (drive price higher). Usually, in a down trend, they are temporary, and are faded back in the direction of the trend. In this case, they continued to be built upon.
2/10 and 2/11 are showing a more even distribution, which signals we are starting to find the correct value after the market went on a discovery phase up.