The E-mini S&P 500 displayed a balanced volume profile in the prior session, indicating that traders may be focusing on the extremes to assess rotational scenarios. Presently, the market is testing the lower extreme, where absorption and short covering are expected to provide upward momentum.

Potential areas of interest with the volume profile.

However, it’s worth noting that the stronger dollar in this session, combined with the presence of positive volatility, introduces a potential bearish tone. This could maintain equilibrium in the market or even push it towards lower price levels. In light of this technical context, the market may explore lower prices before potentially finding absorption later in the session.

When examining the daily interval, we notice a balanced behavior within the medium-term VWAP perspective, especially when considering the Quarterly and Monthly developing values. Interestingly, the Year’s perspective leans towards an imbalance to the upside, possibly indicating a presence of buyers around its upper extreme. Nevertheless, it’s essential to recognize that traders often rely on these extremes to assess potential rotational scenarios. In the current context, the market might encounter selling pressure around the present upper bracket extreme.

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