S&P 500 Futures Daily Insights for Wed 21 Dec 2022
Market Profile suggests some upside in the near-term, likely due to short-covering
GDR Model Insights for the Current Week
GDR Model Performance (2022): +13.73%
S&P 500 Total Return (2022): -18.53%
Market Tone: Potential Transition to Bearish (previous week: Bullish)
Positioning: 0.00% Flat (previous day: 0.00% Flat)
S&P 500 Futures Market Profile Insights for Tomorrow
Yesterday’s trading signals a near-term shift in the market where the ES may stabilize or even have a short-covering rally. Here is a quick breakdown of the markers:
There is an Excess Low put in soon after yesterday’s open
That Excess Low is also a rejection of a breakdown below the current Balance Zone
Monday’s Poor Low was repaired
The market is now holding above the T+2 (Settlement) Low, which reduces the odds of further liquidation
The ES closed with a Poor High in need of repair
Going back to Monday, structure that day suggests Emotional Selling, which implies additional Poor Structure in need of repair
If you decide to make long trades today, be cautious and don’t overstay your welcome. The market is still in a clear downtrend and it’s difficult to tell ahead of time how much short-covering is enough.
Potential Market-Moving Events Tomorrow
10:00am - CB Consumer Confidence, Existing Home Sales