Profile levels:
Composite profile values, prev 10 sessions: VAH: 18,824; VAL:18,310; POC: 18,744
Composite profile values, prev 5 sessions: VAH: 18,768; VAL:18,651; POC: 18,745
Previous RTH: VAH: 18,795; VAL: 18,734; POC: 18,751; tPOC range: 18,750/713/706/701/631
Post RTH/Overnight: VAH: 18,815; VAL: 18,795; POC: 18,808
Prev/VWAP: 18,743/798
OVERNIGHT LEVELS: O: 18,796.75; H: 18,824 (220352hrs EDT); L: 18,755(063353hrs EDT)
PREV SESSION LEVELS: O: 18,694; H: 18,809 (1557hrs EDT); L: 18,778 (0930hrs EDT); C: 18,797/799.25
We have seen dips brought over the past few days, which coincides with the year-to-date trend. It is also important to note that price jumped above 18,500, which is a critical level in terms of derivatives positioning. The weekend’s macro note was prescient in identifying a potentially bifurcative market scenario, whereby the USD is catching a bid along with risk assets. As such, it is important to focus on the nature of the tape moving forward. That is, what are the sellers and buyers distinctly doing now versus before given where we are, all-time highs.
The market structure is bullish, with moving averages and profile distributions being supportive of that statement. Meaningful pull backs always seem to find support from buyers. We must continue to follow the market until it gives us a reason not to do so.
The distributions dictate sentiment is bullish, and the dip buying will continue. Price continues to bounce off long-term moving averages that happen to be near POC levels, whether temporary or not.
Today’s plan is to buy dips at vwap level of 18,793, which coincides with the VAL of the after hours at 794. If this area fails at 790, then we defer to lower levels for buys. The previous o/n VAH at 760 also coincides with the brown moving average at 765. A breach of 740 implies a reversal of fortune for the long side of the market.
