Peter’s Premarket Perspective | Tuesday, January 11, 2022

Peter Reznicek

The Market Profile value areas and ShadowTrader Pivots for /ESH22 and /NQH22 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.

Click HERE for a market profile key that will help you interpret the chart above.

  Pre market indications
Opening In/Out Balance in balance
Overnight Inventory balanced
Current Price/Overnight Range middle third
Shock and Awe no
Potential for Early Trade no
Short Term Bias neutral to bearish, below 20 and 50 SMA daily
  Key Levels for Today
4688.25 ONH
4665.00RTH High / Top of Spike
4653.25 ONL
4646.00 Bottom of Spike
4618.75 Halfback

Ongoing Narrative / Commentary

Large short covering reversal yesterday which was a bit of a head scratcher only because it happened just after breaking trends in both the /ES and and the /NQ.  

Overnight action continued that theme for at least part of its session but has since come down just to the top of yesterday’s range which ended on a spikeSpike rules are in play for today’s session and will tell us a lot about the natur of the buying late day yesterday.  

VPOC’s

  • 01.05  4780.00
  • 12.03  4508.00

Scenarios

  • If there is a small gap by the time we open, focus on the RTH High and whether or not prices move into the spike or not.  Remember that opening above the spike and holding is the most bullish outcome with subsequent amounts of penetration/acceptance into the spike incrementally less so.  
  • Note that the M.G.I. that we have so far has an overnight low which is about in the middle of the spike which shows overnight acceptance of the higher prices.   This does not mean automatically that the RTH session will continue but simply that you should pay close attention to the ONL in early trade.  If the ONL is taken out, target the Bottom of the Spike and monitor for continuation from there.  Any acceptance below halfback puts sellers firmly back into control.
  • Prices that can stay out of range would indicate that shorts are not done covering and pullbacks may be buyable if we can hold outside of range.  
weighted AD Line

Weighted S&P A/D Line Indicator

This script plots both an unweighted and a weighted A/D line using the 11 S&P sectors and their respective weights. This gives the trader a huge edge in discerning the strength of moves and also knowing when there is positive or negative divergence in heavier versus lighter weighted sectors as the day unfolds.

GET YOURS 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