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Market Profile Recap for Monday April 4th 2016

inside day market profile

After Friday’s end of month options expiration short covering day, Monday’s trade was on low confidence, a migrating lower POC, low NYSE volume at 3.6 billion and was an inside day, leaving a poor low. Monday repaired 6 of the anomalies left from Friday.

Depending on Tuesday’s opening, trade ideas could include looking above or below Monday’s balance and either accelerate higher/lower, or look above or below and fail and return back into to balance, targeting the other side of the range. A lower odds scenario would see Tuesday be another balancing day but anything is possible ahead of Wednesday’s 2 pm FOMC Fed meeting minutes.

If there is an opening gap on Tuesday monitor the developing value area to monitor price acceptance or rejection in relation to Monday.

Additional news events scheduled for Tuesday that could cause some volatility are PMI Services Index at 9:45 AM ET and ISM Non-Mfg Index 10:00 AM ET.

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Sunday’s overnight trade made a new recovery high at 2071.50. Recovery highs, like all time highs, rarely hold if made in the overnight session. If Monday opens with a gap higher gap trading rules apply.

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