Let’s update our chart – hint: it hasn’t changed – and take a look now.
We’ve consistently seen the market print the 2,495 level as the “Volume Node” via our Volume Profile Chart for the S&P 500 (SPX).
With the market screaming higher, it’s done so quickly without time to digest price or volume.
This means we have an “Open Air” pocket beneath the market in the event we ever get a pullback (it feels like we never will).
However, one of two things MUST happen now:
Either price forms a new Value Area or Trading Range (consolidation) at the highs and thus the Volume Node (red line) rises to meet the new accepted or balanced range…
or price crashes through the rapid “sugar high” action on low accepted volume BACK toward a level of price and volume acceptance.
That level on the chart — as seen through the prior price consolidation and the Volume Profile — is the 2,495 level.
Plan your trades accordingly and be safe.
The iShares S&P 500 Index ETF (IVV) rose $0.12 (+0.05%) in premarket trading Thursday. Year-to-date, IVV has gained 14.31%.
This article is brought to you courtesy of AfraidToTrade.com.