The overnight auction is slightly higher in the Nasdaq index after an interesting neutral session yesterday. As the week continues on, volumes are light and likely to decrease as we head into the holiday week. Note: US markets will be closed Monday in observation of Memorial Day. We have lots of Fed talk on the docket for today which may lend some volatility to the market. However, as the USA comes online we are priced to open inside yesterday’s value and range.
Yesterday was a neutral day, the type of market profile print where price range extends beyond both extremes of the initial balance. These profiles suggest aggressive indecision on the behalf of the marketplace and tend to occur at or near inflection points. The volume profile print that resulted from the action shows the heavy indecision with a wide distribution and several high volume nodes throughout the profile. We settled near the mid, but there are some interesting characteristics and price levels from which we can glean some intraday insight as today progresses. See below:
Since we can see the seller above, and we can also see the thin structure they desire to press price into, we can zoom out to the intermediate term and see why their presence is being felt. See below:
And if we zoom in on the intermediate term action, we can see the microcomposite low volume node that is pivotal on this timeframe, 3599.75, which you just as easily could have conjured by watching the price action around the 3600 century mark. But at least we know there is a why in the equation. As adult learners we always want the what and the why. See below:
Finally, going to the very long term weekly chart of the Nasdaq composite, we can keep our mind wrapped around the brackets we are trading in. The market spends more time bracketing then trending, so you need tools to trade these conditions. See below:
