Peter’s Premarket Perspective | Wednesday, August 24, 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 upper 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 Bottom of Gap
4161.75 RTH High
4142.00 ONH
4125.00 RTH Low (Poor)
4121.50 VPOC 8.9
4110.75 ONL

Ongoing Narrative / Commentary

Small non true gap higher this morning after some overnight price exploration to a new swing low.

Value was unchanged yesterday which is bearish in the context of the trending day, gap and hold lower in the previous session.  The large gap above us should continue to be carried forward in your narrative as should the newly minted VPOCs as well.

I’ve chosen an hourly chart of the /ES for today’s chart which I believe most accurately shows how little we’ve bounced since the 8.16 swing high.  Assume that sellers are in control unless this chart changes materially.

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

  • Same balanced overnight inventory as yesterday should keep you away from trades early in the session as market is in balance and needs time to show what the “game of the day” is going to be.  
  • The ONH topped out just below the VAH which is bearish to me and also a clear line in the sand where the tone could change. I would refrain from any bullish setups unless prices can find acceptance above the ONH.  
  • The RTH Low is poor and needs repair.  That is a short trigger if retested, targeting the VPOC from 8.9 and then the ONL.  Monitor for continuation and make sure context is confirming.

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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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