Peter’s Premarket Perspective | Friday, May 7, 2021

Peter Reznicek

The Market Profile value areas and ShadowTrader Pivots for /ESM21 and /NQM21 Futures are posted free every morning in the ShadowTrader Swing Trader newsletter.

premarket

WindoTrader 702-800-4628 Speak with Terry about the ShadowTrader discount or CLICK HERE to learn more.

  Pre market indications
Opening In/Out Balance out of balance, true gap
Overnight Inventory 90% net long
Current Price/Overnight Range in upper third
Shock and Awe yes
Potential for Early Trade yes
Short Term Bias SPY above  20SMA, QQQ below, neutral
  Key Levels for Today
4214.00 ONH / ATH
4196.50 RTH High
4179.75 Base of Spike

Ongoing Narrative / Commentary

Solid gap higher after a late day spike is putting both spike rules and gap rules into play. Mouse over both terms and get familiar with them as a framework for how early trade may play out.

The ONH is a new all time high (ATH). That is noteworthy in and of itself but also in the context of the /NQ’s which are still lagging so far behind. Even with last night’s rally, they are still below the 20ma daily. While the broader market can rally without tech participation, it is somewhat unsustainable given that technology makes up almost 30% of the S&P.

  Scenarios

  • As with any true gap, look for the counter trend move first (fade) and note how much of the gap fills if any. Gap rules are in play.
  • Spike rules will tell us bias in the slightly longer term as they will define whether or not prices from the late day rally yesterday are being accepted or not. Note the outcome after today’s session.
Intraday Volume Measure

ShadowTrader Intraday Volume Measure

COMPARE INTRADAY VOLUME IN ANY TIMEFRAME

Fully Customizable Settings!

$20 Buy Now

TD Ameritrade, Inc. and Shadow Trader Technologies LLC are separate, unaffiliated companies and are not responsible for each other’s services and products

Don’t Have a TD Ameritrade Account?

Do you put on a blindfold when you drive too? Open an account with TD Ameritrade today and get everything ShadowTrader has to offer including the live SquawkBox and more!

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.

View all author Posts