Bottom Line:

More of the same. The SPX, RUT and DOW continue to trade in various states of Balance, with the SPX being the poster child for a textbook Market Profile gaussian-like shape in two degrees of time.

All evidence points to an imminent sharp move. I am favoring down and I am positioned that way, but you most certainly do not want to get stubborn if this extremely coiled market decides to spring up.

Weekly Indices and Levels:





SPX Profile

Below is a 6-week profile and a 6-day profile. The SPX is almost perfectly Balanced in both timeframes, suggesting the inevitable transition into Imbalance (trend) is imminent.


NYSE Breadth is extremely weak, suggesting lower prices. However, do not fade price action because if there is some catalyst that creates buying Breadth has a lot of room to run to the upside.


At present there is no big tell. VIX will rise if the indices drop; it will fall if the indices rally.

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