Lower case Market Profile ‘b’ formations can suggest the market had gotten too long in the short term, resulting in short term liquidation off the latest all time high, and probably not the more potent combination of liquidation and new money selling.
Wednesday’s profile chart left a very wide (12 TPO) point of control at 2684.5. Acceptance above the POC could target the excess singles prints from the prior two day’s opening periods, and potentially re-test the all time high at 2698.00, which is a poor high with no excess, and potentially the 2700 level.
Acceptance below the POC targets the close from Wednesday, and low of day at 2679.00. Price acceptance below Wednesday’s low could lead to further liquidation, potentially testing the late, mechanical pullback low from 12/15 at 2674.25, and possibly the singe print at 2669.25, and low from that day at 2666.00.
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