On Tuesday the Nasdaq futures once again approached our upside target, the High Volume Node at 4523. The high for the day was 4520 and the NQ closed the day session at 4500, a 20-point afternoon slide.

The Nasdaq futures have been supported by the supreme stability of the S&P 500 and Dow Industrials as they flirt with new highs, but in my view the gap around 4425 beckons, 75 points below Tuesday’s close.

To get some downside momentum going the key support level at the High Volume Node (4489), indicated by a blue dotted line on the chart, must be decisively violated.

Watch that level on Wednesday.

Reid_5-20-2015_NQ.png

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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. If you would like to receive a primer on using Volume Profile, please click here:  www.daytradingpsychology.com/contact  

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