After a gap opening higher following Monday’s rally, the market left an early poor no excess high in the profile chart and continued to one timeframe lower into the prior day’s trading range. Price reversed and rallied on news that China would reduce trade tariffs against the U.S. from 40% to 15%, but settled to close just below the point of control. Value was mostly higher early, and ended the day with an overlapping to higher value area.
The late rally high and upper distribution at 2661.00/2662.25 could be the early focus on Wednesday. Acceptance into the upper distribution could target the poor high and the upper distribution from the 12/7 profile.
Failure to find acceptance above the rally high could resume the downward tone to the market.