The Market Profile value areas and ShadowTrader Pivots for /ESZ22 and /NQZ22 Futures are posted free every morning in the ShadowTrader Swing Trader newsletter.
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 | out of balance |
|---|---|
| Overnight Inventory | 100% net long |
| Current Price/Overnight Range | upper third |
| Shock and Awe | yes |
| Potential for Early Trade | yes |
| Short Term Bias | market firming, short uptrend in place |
Key Levels for Today
| 3928.00 | ONH |
|---|---|
| 3880.00 | VAL / ONL |
| 3872.25 | RTH Low |
Ongoing Narrative / Commentary
Consolidation day yesterday with very tight RTH range and value area. Overnight activity has taken out that range and is now trading on a true gap higher. Gap rules are in play and inventory is 100% net long.
The ONH is just ticks above a prior swing high and is the obvious upside reference for all involved. Early trade will be dominated today by two dynamics. The first would be selling pressure from those that want to fade a gap open the other would be buying pressure from those seeing that ONH level as a breakout.
It’s the first day of a new month and also the day that a new FOMC meeting begins with an announcement due on Wednesday at 2pm. This could also factor into the action today. The beginnings of new months can often skew bullish and although the major “flattening out” usually won’t come until about midday tomorrow, markets also start to position jockey for position ahead of the announcement.
With the recent bullishness, there is potential that /ES wants to move to the next large round number which would be 4,000 as seen in the chart below.
VPOC’s
- 09.12 4128.25
- 09.09 4067.50
- 09.13 4004.25
- 09.15 3935.00
Scenarios
- Overnight inventory 100% net long and true gap higher puts gap rules into play and also the potential early fade. AS always , if that move is muted or doesn’t materialize at all (gap rule #1), then the takeaway is bullish. Monitor for continuation.
- The ONL / VAL area is the line where the tone has potential to change. I would not even begin to think short unless we were to test that area and start to find acceptance below it.
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
