Volume Profile often gives uncanny targeting precision. Tuesday was just such a day. 

In the Nasdaq, the balance of power shifted toward the bulls on Monday, but not everyone realized that. Tuesday, however, we had clear follow-through to our target (4442), despite the fact that the Dow was down 85 points and the S&P 500 was flat. The high of the day was 4442.75.

As noted yesterday, Monday’s action suggests new highs are in store for all the major indices, and the Nasdaq is once again in the lead. Note the Speed Zone above. Of course, in the futures, breakouts tend to happen when people least expect them, so a pullback here would not be a total surprise. Watch the blue lines if that happens.

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_4-22-2015_NQ.png

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