Market Profile Analysis of S&P Futures – 01.05.18…

Value Areas and POC figures for /ESH8 and /NQH8 Futures are posted free every morning HERE. Click on any posts in the list on the left pane to see them in the main window. Don’t click on the ST logo as it will just refresh the page and you’ll get only the topmost post over and over. Click on the title or text.

click to enlarge – www.windotrader.com/shadowtrader – click to enlarge

Double digit gap this morning outside of prior day’s range and overnight inventory 100% net long once again. Gap rules are in play.

2734.75 is the new upside reference and another new all-time high.

Yesterday’s TPO/volume POC was prominent and could be in play on any retracement. Note how much of the earlier overnight activity also clusters around the 2725.50 area.

While the market keeps galloping forward, there is no indication of longer term traders participating at all. Note that yesterday’s distribution was the 3rd in a row that was shaped like a lower case “p”. None of the up days have had any clean range extension where the distribution is of approximate equal width throughout.

Risk to new longs is exponentially high at these levels. Not because it’s so high, but because of the confluence of poor structure, growing number of VPOC’s and unfilled gaps below us. Those are all factors that momentum traders don’t pay any attention to until it’s too late.

Have a nice day,
peter