Market Profile Analysis of S&P Futures – 05.11.18…

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Futures divergent this morning with S&P’s up 4.50 and Nasdaq 100’s down 4.50 currently. The gap in the /ES is not a true gap so gap rules do not apply.

As the 50% Fibonacci retracement from all time highs to February lows was breached yesterday along with the down trend line, we are looking at 2743 in the SPX cash as the next logical target for the market. The graph below shows this technical level.

The overnight high made it out of yesterday’s range and is the upside reference for this morning at 2726.75. Yesterday’s RTH high had a lack of material excess (only a few ticks) and this dovetails well with my thesis that the upward auction has not ended yet and the market is looking for a little more upside.

The divergence between the two futures could carry over to the RTH session and cause some chop today. A slight pause here would be healthy for the bulls as we have had some strong trend as of late.

Any value equal or higher is bullish. I would say that only value expanding and cleanly breaking to the downside would put the current trend in question.

Have a great day,
peter