The Market Profile value areas and ShadowTrader Pivots for /ESZ21 and /NQZ21 Futures are posted free every morning in the ShadowTrader Swing Trader newsletter.
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|Opening In/Out Balance||in balance|
|Current Price/Overnight Range||upper third|
|Shock and Awe||no|
|Potential for Early Trade||no|
|Short Term Bias||neutral|
|4573.00||Settlement / Overnight Halfback|
Ongoing Narrative / Commentary
Solid gap higher that is just barely within range on overnight inventory that is very balanced. Yesterday’s RTH Low failed to make a new swing low which is potential evidence of bottoming action. To date, value has not yet shifted definitively higher. Continue to monitor where value develops as it is important and is the real confirmation of direction.
Today’s trade is going to be all about whether or not price can move outside of yesterday’s RTH range to the upside and remain there to build upon yesterday’s reversal. Doing so would confirm that the situation is indeed turning, failing to do so would more than likely keep value unchanged and keep bias more bearish.
I am noting that yesterday’s settlement is also overnight halfback and a prior session VAL. For that reason, it’s a level to watch today especially as the overnight activity is very balanced with a quite equal distribution on either side of the settlement.
- 11.22 4715.25
- 11.24 4698.50
- 10.18 4471.75
- 10.14 4428.50
- 10.13 4355.00
- 10.06 4310.00
- Futures are more in sync that usual this morning and we are trading on a non true gap higher. Prices that remain about the settlement/overnight halfback level should set up pullback buys with ultimate targets of the ONH and beyond, given confirming context. I would abandon that line of thinking with any acceptance below that area.
- As mentioned above, note where value is developing today. Although there were clear signs of reversal yesterday with the failure to make a new swing low amongst others, only value developing higher will confirm this.
James Dalton – Markets in Profile
For those who want to go deeper into the auction process, the follow up to Mind Over Markets by James DaltonCLICK HERE