E E-Mini S&P 500 Market Update

Looking at the weekly perspective we can identify an outside bar which should be the first sign of potential change in the current bullish market context. The daily perspective got a pullback but still framing higher. In the early overnight session, the market tested a possible new balance extreme (Open/Close level) with resistance.

Moving forward to the weekly TPO structure we can identify various distributions. Their extremes can serve as support/resistance levels. Glaring at the daily TPO profile we can observe a p-shaped profile and an open below value. That should be quite a bearish sign but a test of the POC/VPOC is still possible via P-shaped pattern scenario. The market found resistance at a low volume area in the previous volume profile. Also, to be noted is the unsecured high which should be revisited and clarified in the near-term.

The market trades above the weekly VWAP structure and found support at the VAH close level after the mentioned resistance at the LVN area. The daily slope is up but we trade rotational inside of the developing value area (the area between the 1. Standard Deviation levels of the VWAP). The previous VAH close level is confluent with the noted POC/VPOC area from the TPO profile. 

We can argue about a possible open drive to the POC level which is confluent with Friday's VAH close level or a continuation of the rotational behavior. Either way, we can monitor the lower timeframe for any possible patterns to have a clue about the next possible trade direction or scenario.

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The current view on the Footprint chart:

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Visit our trading community to learn a more indepth analysis process with various tools such as the VWAP or Footprint chart.

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