Peter’s Premarket Perspective | Monday, February 1, 2021

Peter Reznicek

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

in the ShadowTrader Swing Trader newsletter.

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  Key Levels for Today
3751.25 ONH
3737.25 VAH
3727.75 Halfback
3701.00 Settlement
3685.50 RTH Low

 

Strong gap higher back into Friday’s RTH range after making a new swing low overnight. As of now we are slated to open well within balance on overnight inventory that is also very balanced. Current prices are in the upper third of the overnight range.

All of the above tells us very little about how the day session will play out. Friday’s RTH range was extended and the overnight range is large as well. The better trades will develop later rather than earlier today.

Key Levels are all references from the overnight range and also from the RTH range. Use them as signposts should any weakness develop. Value unchanged to lower today maintains the status quo which is weakness while any value developing higher runs counter to that view. While not listed above, any activity below the RTH Low should assume that the ONL is in play.

Keep in mind as you approach today’s session that markets move from balance to excess and back to balance again…

**The market profile graphic may be slightly compressed and lack sharpness. I am working remotely this morning and as such do not have direct access to a better image.**

  Scenarios

    • Balanced overnight inventory against a backdrop of an extended range gives little information as to how the RTH session will play out. The higher odds setups should develop later rathe than earlier today.
    • Trade from the framework that any activity above the ONH has potential to attract further short covering while acceptance within the value area keeps sellers in control.

 

 

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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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