Updated Auction Market Analysis and Market Profile Trading Levels for the Week

Below are the weekly profile views of the four primary US stock indices and their respective support zones.

The US stock indices broke through several important downside levels on Tuesday as selling began Monday evening and carried through for most of the day on Tuesday. Prices retraced in a mere two trading sessions all the gains of the past two weeks as the market was chopping higher in a low volume, poor breadth levitation act.

We do not think that the recent highs will hold. We reach this conclusion after studying significant stock market highs going back decades in time. Our working assumption is that following this correction last week’s highs will be tested and likely exceeded by some of the indices.

At this point the personality of the Bull Trend in equities off the March 2009 low suggests that it is likely that Tuesday was a momentum low and after a day or two of chop that likely will include slightly lower lows a significant rally will take place. Where that rally carries will be important and is something we will monitor.

Intermediate Term Support Levels – Profile View

Click on the chart for an enlarged view.

S&P: Support: 1310-1306, Resistance: 1325-1330

Dow: Support: 12200-12145, Resistance: 12255-12280

Naz 100: Support: 2319-2309, 229575, Resistance: 2340

Russ 2000: Support: 810-804, Resistance 821-824

Shorter Term Support/Resistance Levels – Profile View

March S&P mini: Support: 1312-1308, Resistance: 1320

March Naz mini: Support: 2368-2365, 2360-2355, 2343-2338

March Russ mini: Support: 810, 805-802, Resistance: 820

March Dow mini: Support:; 12173-12120, 12233

Tom Alexander is an expert in Market Profile. You can learn more at Alexander Trading.

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