S&P 500 Futures Daily Insights for Tue 20 Dec 2022
Market Profile suggests further downside near-term, however odds of a short-covering rally are increasing
GDR Model Insights for the Current Week
GDR Model Performance (2022): +13.73%
Market Tone: Potential Transition to Bearish (previous week: Bullish)
Positioning: 0.00% Flat (previous day: 0.00% Flat)
Commentary: GDR Model is showing sustained Bearish. At this rate the Model will complete its switch to Bearish Market Tone by the end of the week
S&P 500 Futures Market Profile Insights for Tomorrow
The market stopped just short of closing the Gap Up from 11/10 (i.e. from the CPI release last month) and left behind a Poor Low in need of repair. In addition, the overnight session has put in a Swing Low. These don’t tend to last long without being revisited in the regular US trading session.
In short, Market Profile suggests further downside yet to come, however, yesterday’s selling suggests emotional trading. Moreover, yesterday’s high doesn’t have a lot of Excess and as we approach the bottom of a Balance Zone, it’s normal to find some support and potentially a short-covering rally. Previous High as rejection below the current Balance Zone will likely provide a tip on what’s to come near-term.
Potential Market-Moving Events Tomorrow
08:30am - Housing Starts and Permits