Peter’s Premarket Perspective | Friday, December 3, 2021

Peter Reznicek

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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  Pre market indications
Opening In/Out Balance in balance
Overnight Inventory balanced
Current Price/Overnight Range upper third
Shock and Awe no
Potential for Early Trade no
Short Term Bias neutral
  Key Levels for Today
4602.00 ONH
4593.75 RTH High
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.  

VPOC’s

  • 11.22  4715.25
  • 11.24  4698.50
  • 10.18  4471.75
  • 10.14  4428.50
  • 10.13  4355.00
  • 10.06  4310.00

Scenarios

  • 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 Dalton

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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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