The volume profile chart of the Nasdaq Futures shown here is the day session only. The “Floor” is at the Weekly Pivot (4476), which marked the day-session close on Wednesday.

This is good news for the bulls, since intraday probing took the Nasdaq down an additional 20 points, as the equity market tried to decipher rather dramatic action in the bonds.

As noted yesterday, the corrective action won’t be over until the Nasdaq closes above the high volume node “ceiling” at 4522. This process is called “hammering out a bottom” and it is always violent, so tread carefully.

Reid_4-30-2015_NQ.png

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.

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For More Articles from Kenneth Reid, Ph.D

Ceiling and Floor: Nq Volume Profile