If you were looking for a “textbook” example of how Volume Profile coordinates a session, today was it. Scenario A didn’t just play out; it dominated. Six hours before the opening bell, price sold off directly into our Key POC at 6932. As we noted in yesterday’s plan, this was the pivotal area to hold for a move back to the VAH and beyond. The market used that POC as a springboard, slicing through the 6966 VAH and rallying as high as 6991. That is 59 handles of upside for those who stayed on the right side.
Take a look at yesterdays scenario:
The Post-Mortem
The market is currently in a state of high-velocity discovery. We have officially broken above the Value Area where we balanced for nearly two months. What makes this move particularly impressive is that it’s happening while AI sentiment has cooled off; the rally is broadening out, and the structural integrity is holding.
Our watchlist stocks—ASX, CBLL, IMNM, IBP, and BLD—continue to sit at their highs, showing that the “under the hood” strength of this market is just as robust as the index itself. For those who aren’t day trading futures, the simple strategy of buying near the Value Area Low (VAL) or holding a trending move has now yielded nearly 90 handles of profit since we posted this week’s thesis.
Volume Profile Notes
We are entering “uncharted territory.” When the S&P hits all-time highs, we lose the historical volume nodes that usually act as support and resistance. In this environment, we look at Low Volume Nodes (LVNs) to act as our “launchpads” or “trapdoors.” As long as the market stays above the recent areas of high activity, the momentum remains firmly with the bulls.
Tomorrow’s Levels
The main level for Thursday’s session is the 6968 LVN. This sits just above our previous 6854-6966 Value Area.
