The equity futures experienced a slight drift lower overnight, as the globex timeframe continues to show a slight edge to the sellers this week. Sellers put in a lower high overnight on the NASDAQ composite at 3678.50 which is the VPOC from yesterday’s short squeeze profile.
This lends a bit of support to the idea that the buyer strength we experienced yesterday may have been a temporary force, and sellers may assert themselves again today. The short squeeze profile, or P-shape profile is much more pungent and actionable when printed during an uptrend. It usually occurs at or near the end of a thrust higher before the marketplace resumes its downward trend. Today, we are trending higher, thus it reduces the significance of the print slightly.
The prices below have seen thorough auction, but I still think price tests lower to verify if buyers still have the same level of conviction below. Today is the third day I will highlight the naked VPOC we printed on 02/13 at 3651. These tend to get cleared up (tested) eventually, even if we are to continue higher. I also continue to highlight the VERY low volume node at 3635.25. If this level is breached, we may see rapid acceleration downward, liquidation-type trading.
I have highlighted these levels, and a few other observations on the following market profile chart:
congrats on being added to the app. you’re the unsung hero of iBC.
wow, thanks for the kind words matt_bear.