The Nasdaq 100 did tip its hand on Wednesday, opting for the rally within the megaphone pattern shown in yesterday’s chart. This bullish bias became clear immediately after the Fed minutes were released.
I noted that the megaphone, if activated, would take us above the resistance line at 4371. The NQ closed at 4374.
As expected, the bears are now on the defensive. One can see that from the rather vigorous rally during the final minutes of the day session. The upside target for a completion of the megaphone pattern is around 4400. The resistance level between here and there is the low volume node bracketed in red on the chart below.
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.
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