Yesterday saw another attempt to push into the daily range shown above and was rejected. Volume was 1.5m contracts and 3.3bn shares on NYSE, lower than we've seen in the past week (apart from Monday's bank holiday volume).
The past few days has formed a balanced distribution and following the rejection at 2014, the destination became the other side of the micro range. Overnight has moved slightly lower into a composite LVN where we may see responsive buyers step in or a slide back to the top of value of the range towards the 2060 composite HVN.
The market profile shows in more detail how value pushed into the spike from last Friday. The bottom of this spike is at 1989.50, which is where the breakout occurred.
The overnight range is currently 1989.25-1996.50 versus settlement at 1994.00, testing the spike base. If we hold below this overnight low, I'm looking for the naked VPOC at 1982.50 as the next target, with potential to see a more aggressive liquidation break to the 10/07 poor low at 1967.50 and open gap between 1943.75-55.25.
A move back above yesterday's VPOC puts the shorts in trouble and could see a covering rally.