Market Profile Points the Way
OK SP emini traders here is the deal.
The SP 500 market showed a very lackluster attempt to break a critical upside level at 694.
If your a Market Profile watcher then you had that price level in your sights as the early trade attempted to break above and take on the 700’s
It was not to be however, the nature of the market has simply been an inability to find any longer time frame buyers who are willing to hold the bid into the close. And for that reason we have seen every attempt to break even the slightest high pivot, simply fail and retrace back to it’s mean
This is not to suggest a lack of trading opportunities, in fact today’s morning trade provide some great setups and early points right out of the gate. The chat room took on a hush as the traders sat on their morning profits and waiting out the midday chop zone.
Counter trend reactions are normally much quicker and stronger than the greater trend, and what that means is we are due for a quick almost viscous snap back up through 700, to test 723 and close the gap at 732 ish.
Hold on to your hats, it will be swift, there will be buyers, the volume will be huge, the CNBC talking heads will be screaming recovery, it will make front page news in the daily papers.
But sadly no, it will not mean the market bottom is in. What it does means is that we are oversold and experiencing a reaction counter trend move.
Heads up Market Profile Traders, watch your curves (distribution curves) that is, let the Profile point the way.
More action every day in the emini chat room..
