Over the last three trading days the S&P futures have tested and re-tested key support at 1984 (aka the “Floor”). I was concerned that the market might fail there.
Yesterday (Monday), however, the floor was tested rather severely and it passed, ending the day with a stunning 25-point rally. This rally broke the down-trend line from 1/26, so it has some technical potential.
You already know the drill. The presumption is we go up to test the 2027 level from below. If the S&P can get above that level, there’s a very good chance the correction/consolidation is over.
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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