Over the last week or so the Nasdaq futures have been busy filling gaps. The largest was at 4349 and that one was filled on Wednesday. I remarked in yesterday’s note that a retest of the Lower Value Area at 4334 was still possible and it did indeed happen in the overnight session.
On Thursday, however, the market acted normally, bouncing as expected to the Volume Profile Point of Control at 4409.
We have the monthly employment report on Friday morning. News tends to move markets in the direction of the existing trend. Interestingly, it appears that most active traders are bearish at this time.
Since markets like to fool the majority, if possible, this implied directional bias sets up the distinct possibility of a nice run to the Weekly Pivot target at 4467. An hourly close above 4409 would probably ignite that run.
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. If you would like to receive a primer on using Volume Profile, please click here: www.daytradingpsychology.com/contact
###
Related Reading:
