Peter’s Premarket Perspective | Tuesday, August 23, 2022

Peter Reznicek

The Market Profile value areas and ShadowTrader Pivots for /ESU22 and /NQU22 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 middle third
Shock and Awe no
Potential for Early Trade no
Short Term Bias uptrend broken, prices below 20sma daily
  Key Levels for Today
4220.75 Top of Gap
4180.50 RTH High / Bottom of Gap
4157.00 ONH
4150.75 Top of Single Prints
4146.00 Bottom of Single Prints
4131.50 RTH Low / VAL
4121.50 VPOC 8.9
4118.00 ONL

Ongoing Narrative / Commentary

Gap and go yesterday that filled the large downside gap but left an almost equally large one above us. The one sided trade left another VPOC above us as well which makes it three.

Overnight inventory is quite balanced indicating a pause here although not without price exploration below the RTH Low which is generally more bearish. Yesterday’s RTH activity closed both the /ES and the /NQ well below their respective 20 period simple moving averages.

In the chart of the day, I’ve left the recent balance areas highlighted. Current prices in the /ES are right in the middle of the more recent congestion which could indicate some two sided trade until we resolve this area. Further weakness puts the 50sma (red) and the uptrend line (around 3900) into play.

/ESU22 – Daily
VPOC’s 
  • 08.16  4308.25
  • 08.18  4278.00
  • 08.19  4230.75
  • 08.09  4121.50
  • 08.02  4094.25
  • 07.28  4073.50
  • 07.27  3975.00
  • 07.26  3924.25
  • 07.13  3808.00
  • 07.14  3794.25
  • 06.17  3675.50

Scenarios

  • Opening within range on balanced overnight inventory means no shock and awe and tells us little about the potential early trajectory of the market. Let things shake out a bit before starting day timeframe operations.  
  • Thus far, overnight corrective activity against the backdrop of yesterday’s trending day lower has been weak. I will go with that into today’s session and assume a bearish stance unless the ONH can be taken out.
  • There is a short set of single prints just above the settlement. Failure to repair this area would be a bearish signal as would be a move into that area and a rejection back out.

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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