Split view market profile chart, Fed Day, December 14:

The U.S. Federal Reserve raised interest rates on Wednesday and said it will look to increase rates three more times in 2017, instead of the two foreseen as of September, followed by another three increases in both 2018 and 2019.

The market sold off in choppy price action after the news, taking out the last two pit session lows, stopping the daily one timeframing higher, and coming within two ticks of the Dec. 9th low at 2242.50 before rallying to 2260.00 late in M period. The market closed off its low at 2252.00.

Depending on the open on Thursday, the late 2260.00 rally high could be resistance if price is accepted above Wednesday’s close at 2252.00. Failure to find acceptance above that level could keep the downward tone in play. If the market gaps open lower on Thursday and accelerates, price could attempt to repair some of the multiple anomalies left from the Dec. 7th and 8th market profiles.

Wednesday’s high was just two ticks below the previous day’s pit session all time high at 2273.00 (March contract), which was also a poor high on the market profile chart with just one tick of excess. Acceptance above 2260.00 could potentially lead to a retest of the recent new all time high.

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