Market Profile Analysis of S&P Futures – 02.22.18…

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.

Comments late day on the SquawkBox (I’m usually there Monday and Wednesday afternoons with Scott Gillam) proved to be prescient as I was saying that late day sellers usually don’t fare well. S&P futures are gapping up 12.50 currently and /NQ about 39.

Value has been relatively unchanged for four sessions now.

Yesterday’s volume and TPO POC’s did not migrate lower with price and the lower end of the market profile distribution was a large spike. This is never good location for those who exited the market short.

Overnight inventory is balanced to net short. As of now we would be opening within balance (yesterday’s range) and thus gap rules are not in play. Spike rules, however, are.

The spike is defined by the area from 2714.00 down to the RHT low at 2693.50. Trading within the spike and accepting here would be bearish because it affirms the lower prices in the spike. Rejecting the spike and trading and finding acceptance above it would be more bullish as the market is rejecting the lower prices and not treating them as fair. If you click to enlarge the market profile graphic above you’ll see that the entire spike is on a taper of volume, in fact no price level does over 10,000 contracts until all the way up to 2719.75. I’ll leave you with THIS LINK again. I continue to be amazed at how few people are willing to pay for this valuable information that pays for itself over and over every day (for me at least!). Yes, I know…the data fees, etc. Well, you either want to be a serious professional about this or you don’t. It’s a commitment.

The ONH is just inside of yesterday’s VA. Am carrying forward that overnight prices have rejected the value area thus far. Early movement inside the VA probably brings in more covering. Target halfback and then the TPO POC at 2731.00 if context is telling you that we could carry that far.

Have a great day,
peter