As forecast, the S&P moved up nicely on Friday after faking a trip down to fill the gap at 2070. Last week, I mentioned that in this type of market climate, head fakes are common.
When you can see the lower half of a megaphone forming during a down-spike, then you should assume the upper line (as drawn) is a possible target. This market loves megaphones and often the symmetry prevails.
The 2120 target is next for the S&P, followed by 2140 and ultimately 2164. If the 2164 level is attained in March, it would represent a time and price convergence that is likely to mark an intermediate term top.
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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