The S&P 500 is stabilizing near its all-time highs, which is a bullish development. Even more interesting, from a Volume Profile perspective, is the development of a new key support area at 2091. As volume accumulates around a price zone, it creates a floor, a basis for a move higher. The upside target is 2118.
That said, the market is still overbought and needs to work that condition off. Moreover, the gap at 2070 still beckons. I expect a move in one direction or another on Friday.
A Note on Volume Profile
The histogram on the left side of the chart shows the volume distribution in the S&P futures for different periods of time. Key support and resistance levels are indicated by the peaks and troughs.
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