Peter’s Premarket Perspective | Thursday, January 14, 2021

Peter Reznicek

The Market Profile value areas and ShadowTrader Pivots for /ESH21 and /NQH21 Futures are posted free every morning

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  Key Levels for Today
3824.50 ONH / New ATH
3817.75 ONH
3806.00 POC / Settlement
3804.25 ONL (45 degree line)

 

Overnight activity is very compressed with little range to show for an entire evening’s work by the Globex crowd. As of now we are still trading within the prior day’s range and also within the larger balance area that we discussed yesterday. Continue to carry that forward in your narrative. Overnight inventory is close to 100% net long and we are currently trading in the middle to lower third of the overnight range.

The overnight distribution has a 45 degree line from it’s lows. As always, less import than seeing the same pattern in an RTH session but worth noting nonetheless. Assume the ONL could be secure in today’s trade.

Overall, there continues to be little to say as the market remains within balance. Balance rules continue to be in play for this larger multiday range. Value has been little changed over the last five RTH sessions.

The second scenario is left over from yesterday’s PPP by design as it’s still as relevant as yesterday.

  Scenarios

    • There is some potential that the ONL remains secure in today’s session due to the overnight pattern. I would bias long unless that ONL is taken out. I am keeping firmly in mind that for now overnight traders were not able to get any major upside breakout going and the session has been relatively muted
    • Assume further balance while we remain within the balance area. Balance rules are in play. Go with any breakout from balance that has corresponding context of internals and tempo. Price action remaining within balance should be treated as responsive trade only.

 

 

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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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