S&P E-mini Market Profile Daily Chart, January 4, 2017

With short covering probably the motive for the rally to begin the new year, there is poor market structure both above and below the current market – multiple matching highs on the daily chart and a poor low from January 3rd’s market profile chart. There also remains the unrepaired poor structure from the December 7th elongated profile.

Thursday’s wide point of control (POC) could provide some clues to direction in the short term, acceptance above Thursday’s POC and above Wednesday’s close could see price initially test the prior high. Failure to find acceptance above 2263.50 could bring in sellers to test Wednesday’s low.