The market gapped opened higher from Tuesday’s small range, inside day but sold off late after the release of the FOMC minutes where many Federal Reserve policymakers said it might be appropriate to raise interest rates again “fairly soon”, if inflation and jobs data comes in line with expectations.
Tuesday’s Market Profile chart featured a double distribution. Failing to find acceptance back above the high of the lower distribution at 2354.25 would imply that nothing has changed in regards to the late selloff down trend.
If price is accepted above the lower distribution and trades back into the L period single prints, potential resistance is at the single print at 2360.75 at the lower end of the upper distribution. Acceptance back into the upper balance could target the wide point of control at 2370.75 and poor high at 2375.00.
If the selling pressure continues into Thursday’s pit session and price finds acceptance below Tuesday’s low at 2344.25, potential targets to the down side are the April 3rd low at 2340.00 and March 28 low at 2333.50. If the previous support area at the prior multi-day trading range lows and March 27th single print below 2332.00 is breached, the all important 2318.00 March low comes into focus. Trading below 2318.00 would stop the one timeframing higher on the monthly chart, a more significant sign of change.
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