The Nasdaq 100 (NQ) pushed up to a new high on Monday and stalled about 50 points from our target zone (4525-4530). It may get there on Tuesday. This zone is a Fib Extension Zone, and markets tend to reach this level of extension 80% of the time, once they post a new high.
The NQ is much stronger than AAPL right now, and it is demonstrating that it doesn’t need AAPL to participate in order to zoom higher. That’s bullish.
By the way, Volume Profile is not particularly useful when an index is making new all-time highs or lows; it’s most helpful during retracements.
A Note on Volume Profile
The histogram on the left side of the chart shows the volume distribution in the S&P 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.
