In Market Profile parlance, the US stock indices are in Vertical Development UP. Until downside Key Reference Areas are breached, the probabilities are on the side of long trades.
Below are the support levels heading into next week. There is no objective resistance above recent highs. Traders fixate on round numbers so 1250 to 1300 is a best guess at immediate upside potential in the S&P.
S&P cash: 1232, 1225-1218
March S&P mini: 1227, 1218.50-1211.50
Naz 100 cash: 2196, 2194-2183
March Naz mini: 2196, 2189-2176
Russ 2000 cash: 767, 707-700
March Russ mini: 765.10, 703-692
Dow cash: 11421, 11392-11318
March Dow mini: 11349, 11326-11265
The next two weeks in the markets are typically low volume affairs and more random than usual. (I’m winding down for the year thus the bare-bones column.)
Tom Alexander is an expert in Market Profile. You can learn more at Alexander Trading.