Here is an updated chart I had posted last weekend calling for a sideways move in the market this week.You can find my last post here
The changes in the chart are in the heat map on the left which gives you the volume profile for the entire bracket of 5730-6092 and the new heat map on the right which is this week’s volume profile.
As you can see from the red in the charts, there is a clear accumulation of volume at 6000 levels which would give rise to the possibility of a directional move coming from these levels.
Besides, the market put in a non-trend day today, which in itself will call for a large move to follow either immediately or the day following.
I was chuckling away when some TV presenters were attributing holidays, year end etc etc to describe today’s action, but every profiler would be rubbing his hands in glee at the prospect of an eventful day coming up.
5930 or 6067 have a 50 % probability each from current levels and one of them would be definitely visited.The 6000 straddle will be a good bet with a 20 % stop loss in the front month options.The gains in one will exceed the 20 % loss in the other.