Market Profile Analysis of S&P Futures – 09.25.17…

Value Areas and POC figures for /ESZ7 and /NQZ7 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.

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I’ve marked off a few key points in the market profile graphic above that I believe are important carry-forwards as we come into today’s session. As ranges seem to get tighter and tighter, the time between momentum traders shifting from overly long to overly short seems to be shrinking. Astute students (I love the sound of that) of the profile can see them quickly. If we understand this fully, then we know that even stronger signals such as a 45 degree line may not have very lasting effect and we’ll be less surprised (or less stuck in a position that goes from hero to zero in about an hour) when the market abruptly reverses.

For now, maintain the two horizontal lines on the chart as upper and lower references.

As of now we are slated to open with balance and overnight inventory is also balanced with an about even distribution of time on either side of Friday’s settlement. Thus there is no implied bias coming into the open.

Overall, the market may just be looking to ride out the rest of September within this malaise before turning its attention to 3Q earnings which will start coming in early October. I will say in closing that ranges being as compressed as they have been for some time now, we are due for a larger candle. Whether that candle is red or green, really cannot be determined given the information we have and where the market is trading relative to recent range.

My video from this weekend in case you missed it…….