As I forecast yesterday, given the overbought conditions, the S&P decided to fill the gap from 2/4-2/5 at 2036.75. Filling gaps is normal housekeeping behavior.
I anticipate a period of consolidation below 2061 before another foray to the upside. This consolidation could take a few days or even a bit longer.
The best time for a breakout rally, however, is when most folks least expect it because a bona fide “wall of worry” is in place. Bulls, pray for bad news.
A Note on Volume Profile
The histogram on the left side of the chart shows the volume distribution in the S&P futures for the entire year of 2014 through today. Key levels are indicated by the peaks and troughs.
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