In yesterday’s market review, I forecast a rally into the 4370-4384 resistance zone.  That level was attained within the first 15 minutes of the day session on Monday. The next 5-minute bar, however, exploded 17 points to the High Volume Node at 4407 (the gold line on the chart). 

The key lesson from Monday’s action is to recognize there’s nothing more bullish than a failed bearish pattern. Once the resistance zone was taken out, the bulls enjoyed a stampede though the mini Speed Zone (shown in red) between 4384 and 4407.

The short term target is 4442, but Monday’s action suggests new highs are in store for all the major indices.

A Note on Volume Profile

The histogram on the left side of the chart shows the volume distribution in the Nasdaq futures for different periods of time. Key support and resistance levels are indicated by the peaks and troughs.

 Reid_4-21-2015_NQ.png

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