Thursday Prep


We can see from the profile a fairly balanced distribution, considering the moves, and a VPOC above the current range VPOC at 64.50. The market remains within a range and is building energy the longer it stays in it for a trending move, as the more volume that builds is going to put more positions offside once it breaks. 

We saw some good movement yesterday, thanks to Trump's press conference. The morning move higher rejected the initial resistance zone. The comments regarding the drug industry by Trump sent the biotech sector into a spin, pushing down into the 54-56 zone where buyers responded. Another test of that zone after the initial bounce saw a rally into the close to just break through initial resistance. The USD sold off sharply and yields dropped (helped by a lack of economic stimulus detail from Trump and a strong 10 yr auction).


So far the market has sold off from the closing high and continues to balance around the range high volume area and VPOC at 64.50. The Globex range is currently 2260.75-70.50, inside yesterday's range.


The current multi day range continues to build volume and potential energy for a trending move once the range breaks. Until then, we have a long term uptrend and a short term neutral bias. We could see responsive action from both sides and I'll be closing watching for signs of increased pressure/volume and momentum as well as broad market participation, or lack of it, into the zones. 

Below are the zones for today on the split session market profiles and the shorter term renko charts: