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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
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