This is a market waiting for news.
Although the Nasdaq futures have a nagging unfilled gap between 4428-4444, the NQ has been deliberately consolidating around the Volume Profile Point of Control (gold dashed line on the chart). Consolidations are difficult for trend traders to handle and in environments like this they find themselves continually on the wrong side of the market. Don’t let that happen to you.
So far, support from the High Volume Node at 4487 is providing a technical floor for the market and our Volume Point of Control now has a blunted peak.
While my upside target for the Nasdaq futures is 4617-4627, the chances of a surprise gap-fill run to the magenta zone are nevertheless real.
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
