What Happened: Alongside preparations to nominate former Fed chair Janet Yellen for Treasury secretary, as well as hopes for an economic recovery on COVID-19 coronavirus vaccines, U.S. index futures added to Monday’s v-shape recovery.
What Does It Mean: After a failure to accept Friday’s late-day spike, participants established an excess-low near the micro-composite high-volume node, the fairest price to do business in prior trade. Since then, initiative buyers broke the three-day balance-area high and drove through the low-volume node at $3,580. The subsequent activity found acceptance in the 11/18 profile, suggesting a change in near-term directional conviction.
As a result, participants come into Tuesday’s day session knowing that the market has made a substantial advance, gapping up to the $3,610 high-volume concentration which denotes value and supply.
Higher prices should allow responsive sellers a favorable opportunity to sell and initiative buyers a favorable area to take profit. An initiative drive through this area would be the most bullish outcome, and would target first the $3,630 balance-area high, and then the November rally high.
Levels Of Interest: $3,580 low-volume node, $3,610 high-volume node, $3,630 balance-area high, $3,668.75 rally high.
Bonus Graphics: There is more than meets the eye.
