Market Profile Analysis of S&P Futures – 12.16.16

Peter Reznicek

Market Profile Value Areas and POC figures for /ESH7 and /NQH7 Futures are posted free every morning HERE. Click on any posts in the list on the left pane to see them in the main window. Don’t click on the ST logo as it will just refresh the page and you’ll get only the topmost post over and over. Click on the title or text.

market profile

Futures trading +4.25 as of this writing and trading completely inside the value area. Note how the ONH and ONL match up quite perfectly with the VAH and VAH. I discussed this on tastytrade yesterday as a market that is “acting right” and balancing before probably moving higher. If you’ll recall yesterday’s blog predicted an inside day with opportunity at value area extremes and that’s exactly what we got.

Consider yesterday’s RTH low and high (2249.25 and 2267.75) as your reference points for today’s trade. Only a move beyond those points brings about the chance of a larger change. Overall, I think the market has more balancing to do as the post-election advance is so large and we’ve just started digesting it. That being said, I would be on the lookout for the look above or below trade where prices might move outside of yesterday’s range and then enter back in. Internals and context would be the arbiters as always.

Overnight inventory is just slightly net long and as touched upon above, pay close attention to VAH and VAL as overnight action has turned there all night.

Have a wonderful day,
peter

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Peter Reznicek

Peter Reznicek is the founder of ShadowTrader.net and writer of Peter's Premarket Perspective, a morning market profile blog to help people plan their trading day and organize their thoughts before the market opens. He can be reached at asktheshadow@shadowtrader.net.

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