The forecast foray to the upside occurred in a timely manner yesterday, with the market closing at the key “ceiling” level of 2061 after a brief overshoot. Surprise rallies happen when a significant “wall of worry” is in place, as it is now.
This is a new profile from Mid-December, showing a volume profile point of control (VPPOC) at 2051, which should act as a new floor for any retracement. The new upside target is 2088.
A Note on Volume Profile
The histogram on the left side of the chart shows the volume distribution in the S&P futures for the entire year of 2014 through today. Key levels are indicated by the peaks and troughs.
If you would like to receive a primer on using Volume Profile, please click here.