On Friday, the market launched a scouting party above the S&P ceiling level (2061). Such moves are rarely successful the first time. With conditions overbought, the S&P is likely to attend to some housekeeping and fill the gap at 2036.75.
I anticipate a period of consolidation below 2061, before another foray to the upside. As mentioned on Friday, 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. Well-publicized concerns about Greece and Ukraine create an excellent “wall of worry” for the market to climb.
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.
#####
If you would like to receive a primer on using Volume Profile, please click here.
