market profile

Market Profile Analysis of S&P Futures 12.19.16

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

Value has been very overlapping to down over the last four sessions. While the market sits atop all time highs, there are very few stronger sellers present at the moment. Profile and T/A references are working very well.

Friday’s low came to within one tick of Thursday’s low and stopped. The low was also poor indicative of weaker sellers painting themselves into a corner by not being able to get follow on sellers to move prices lower. All poor lows/highs should be carried forward but this one especially as it is a double bottom. Additionally, while I didn’t draw it in on the market profile graphic above, one could draw a 45 degree line from the low to the TPO POC. On a scale of 1 – 10 I give that 45 degree line only about a 5.5, however. A more true 45 degree line pattern would have the low further away from the POC.

Overnight inventory is 100% net long which is not surprising given the patterns discussed above. I tweeted upon Friday’s close that I thought the odds were strong that we would move higher in the overnight session and gap open. While futures are currently are up 2.75, I expected a bit more than that. The RTH session has much more import and sometimes these things take time to develop. That was the subject of a recent recording of ShadowTrader Uncovered If a rally doesn’t develop today, then take it as that the market is not yet overly short and the balancing and slight correction from the most recent longs is continuing.

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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