Market Profile Analysis of S&P Futures – 12.29.16

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

Liquidation break yesterday from the open to correct overnight inventory that was 100% net long and also slap some light volume late to the party longs.

Volume was still on the lower end and structure was poor with double distribution separated by single prints. 2254.75 down to 2250.75 is the length of the spike that separates the two. Pay attention to both of these levels. As always, acceptance in the lower distribution is more bearish, acceptance in the upper one is less so.

I am seeing the lower bound of this larger balance area as being 2243.00. Note how the ONL went down to 2242.25 but no further and has since reversed. That is of note. Could be a look below and fail which would signal that short covering rotation back to high end of range could be an option. Acceptance below the ONL would be more bearish and represent more of a break out to the downside.

Overnight inventory is in a tight range and balance and as of now we would be opening within yesterday’s RTH range. I will be paying attention to yesterday’s RTH low today. If yesterday’s break was anything more than a one day event, then prices should at least make a fresh two day low.

Have a nice 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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