Market Review and Forecast: Correction Averted

I expected a continuation of the correction in Apple (AAPL) on Thursday and at the open it dropped quickly toward $126, taking the Nasdaq Futures (NQ) down to 4431. However, before reaching its gap, AAPL stabilized and reversed without doing much damage.

The head fake lower sets up an immediate rally in the NQ to 4525-4530.

The accompanying chart shows the Volume Profile for the Nasdaq 100 Futures over the last 120 days. The High Volume Node at 4443 is now support for that move. The 4525-4530 target is a Fibonacci extension cluster.

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.

Reid_2.27.15_NQ2.png

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