The Nasdaq futures rallied about .75% on Monday, shrugging off the “bad news” from Friday’s weak jobs report. Score one for the bulls. The market broke through important trend-line resistance and closed well.
Typically, a retest of the trend line break follows such a breakout, so be prepared for that on Tuesday.
Interestingly, the market stalled at the 25-day Volume Profile Point of Control (VPPOC), at 4352. This is now the “line in the sand.” A move above this key level could go on to make new yearly highs. If this level is rejected a second time, then the market may have more downside work to do.
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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