The futures drifted lower last night, after some selling took hold late into yesterday’s afternoon session. The action was balanced, and featured a proper auctioning of price before finally determining a drift lower was in order.
The move pressed us down into the single TPO prints from yesterday which means we are opening in range/out of value verses yesterday’s trade which elevates the risk/reward for today’s session. I have a rule that will not let me trade inside of single prints unless I am going with the short term trend, which in this case is down.
I have drawn a potential scenario for today, where I expect us to run the zipper down and test the value area high at 3670.50. Should this occur, we may see a balance ensue. If we continue lower without responsive buying, our next levels are the VPOC and eventually the value area low at 3662.75. These observations can be seen on the following NASDAQ market profile chart:
Right down the zippa!