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Analyzing overnight price action

Ironically, the dead cat bounce some analysts were talking about on here about the broad market in fact, in our opinion applies more to cryptos as bitcoin futures see a resurrection in price indicative of having perhaps found an interim bottom. We will have to see. Meanwhile, in this early posting of the market profile summary, Emini S&P futures at the time of this writing is virtually flat after having pulled back from the ON high of 4248.25. Futures opened at 4237.50 yesterday after the post-settlement close and price is hovering right around that area having clocked a low of 4231 which is also just above the Fib halfback which is now at 4227. ON participation remains thin through the European open and as it has been customary in the past few days, European participation always goes net short on a futures gap up. Buyers however outnumber Sellers since the futures open at 6 pm yesterday into about 7:15 am today. With the stall in the overnight session at 4248.25, we now have value virtually unchanged a little past 8 am in the morning and futures are flat and therefore at this time there is no gap to talk about. 

Possible scenarios and outline for trade positioning

• For those banking on a continuation higher today, the best point of entry would be in a broader range between 4214.25 and 4225.75 and this is due to the fact that the ON move higher, stalled.
• Shorts pushing price lower from the ON high to the few hours past the European open could attempt to push things lower in a profit taking move which would place resistance above 4244.50 therefore if we see resistance at that price point into the open, expect at least 4226.50 area to be the lower target and this will need to occur early in the session.
• Into the 9 am timeframe, if we remain flat, it would be likely that we see a grind higher today versus a move lower with ON participation skewed to the long side more than shorts.

Key Levels to factor for the intraday price movement.

TPO Chart

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