- True gap higher on net long o/n inventory
- Trade negotiations with China continue to unfold ahead of the November 10 trade truce expiration. Bloomberg reports that President Trump stated soybeans, rare earth materials, and fentanyl are his main concerns with China that will be addressed in talks set to take place in Malaysia this week.
- Overnight activity had very minor price exploration into Friday’s range potentially indictive that sellers are stepping aside.
- The market will receive a hefty batch of earnings reports this week that will include nearly one-fifth of the S&P 500.
| Pre Market Indications | ||
| Opening In/Out Balance | out of balance | |
| Overnight Inventory | net long | |
| Current Price/Overnight Range | middle third | |
| Shock and Awe | yes | |
| Potential for Early Trade | yes | |
| Short Term Bias | neutral | |
Scenarios
- I believe the starting point this morning is that Friday’s strong close was a surprise to many sellers. The true gap higher only adds to that, creating some shock and awe. I see potential for higher, especially if the POC is not tested or is tested and we cannot move lower.
- Plenty of nuance in the upper half of the distribution, all of which are key levels. Use them all as signposts on any move lower inside of range and also as bullish signals given which ones are not tested.
- Market continues to be somewhat on edge regarding newsflow around China and tariffs. The most powerful long signal is still if there is a trendline break as I describe in the video.
| Today’s Market Profile Chart |
The chart provided is from WindoTrader. CLICK HERE to learn more about the ShadowTrader discount. Interpret the chart above with the Market Profile Key.
| Key Levels for Today | ||
| 6744.50 | Bottom of Single Prints 10.16 | |
| 6737.50 | ONH | |
| 6718.00 | RTH High | |
| 6712.00 | Bottom of Single Prints | |
| 6707.00 | POC | |
| 6700.00 | Top of Single Prints | |
| 6697.25 | Bottom of Single Prints | |
| 6679.25 | Halfback | |
| 6640.50 | RTH Low | |
| Virgin Point of Control (VPOC) | ||
| none | ||
| Today’s ES and NQ Market Profile and Pivot Point Numbers | ||
| Value Area High | 6715.50 | 25029.00 |
| Point of Control | 6707.00 | 25000.00 |
| Value Area Low | 6667.50 | 24806.00 |
| R3 | 6811.00 | 25520.75 |
| R2 | 6764.50 | 25288.25 |
| R1 | 6733.50 | 25137.50 |
| Pivot | 6687.00 | 24905.00 |
| S1 | 6656.00 | 24754.25 |
| S2 | 6609.50 | 24521.75 |
| S3 | 6578.50 | 24371.00 |
