S&P 500 Futures Daily Insights for Tue 13 Dec 2022
Market Profile suggests today was dominated by emotional trading. This is oftentimes enough reason for caution ahead of a major data release
GDR Model Insights for the Current Week
GDR Model Performance (2022): +24.53%
Market Tone: Bullish (previous week: Bullish)
Positioning: +248.69% Long (previous day: +258.66% Long)
Commentary: GDR picked up on Bullishness today, however the reactions to CPI tomorrow and FOMC on Wednesday will almost certainly determine whether Market Tone will go into Transition at the end of the week
S&P 500 Futures Market Profile Insights for Tomorrow
Today was dominated by short covering which can weaken markets. Moreover, two additional trapped short positions are now below current levels. On the other hand, there is a Bullish case to be made based on yet another Excess Low put in today, and the very strong close.
Generally after a day like today I would be Bullish despite the poor structure below, however, that traders chose to engage in emotional trading, bidding price up and adjusting their inventories in this fashion ahead of the CPI release tomorrow makes me cautious to say the least.
Potential Market-Moving Events Tomorrow
08:30am - CPI