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Good morning!
Well the bulls did it again.....the short term sell off has quickly reversed course and traders in the overnight session have ripped the futures right back up and we now have a gap above yesterdays range! Also note how well that downside target of 5270 held on Monday. Yesterday's low was 5274.25...a sign the buyers resumed their operations!
We have seen this literally dozens of times over the past 6 months so the buyers are right back in control. When we would have these kinds of liquidation breaks in the past, in any other normal market, we would have some follow through, but as we all know, this is an extremely bullish trend fueled by Artificial Intelligence and Crypto!
We even added another VPOC above us yesterday (which is a bearish sign) but the pre market futures are already in the vicinity of 5300, so that will very likely be taken out as the trading day begins! The trapped longs look like they are going to get bailed out again!!!
As I mentioned yesterday........
"Well it's possible but lets not get too excited too soon! We know how this market gets continually propped up all the time so lets see what the next few days brings us."
The profile pic below once again shows where the key lines in the sand are located! As long as we stay above yesterday's high and the poor low from Friday 5289-5288, then bulls have retaken control. A move above the poor high from Friday puts the upper targets in play. Only a move below 5288 then 5270...... WITH a confirmed close below 5270, would change the current trend!
Overnight inventory is 100% net long and we have a true gap (outside of prior days range) so there could be some fade lower to correct the overnight inventory. Target 5288.75 then see if they bounce it back up or sell it off!
VPOC update: AGAIN!!!
We actually put in ANOTHER NEW VPOC ABOVE current PRICE!!! We now have two above @ 5319.25 and now 5300!! We still have 22 untested points of control below current price but this is the is the first time in a very long time that we put in two back to back VPOCS above current price! As mentioned above however, we could take out 5300 very easily today.
TARGETS AND KEY LEVELS TO WATCH:
/ES upside target is: 5315 - 5320
Key Levels: 5300 - 5300 - 5306 VPOC and Overnight high
downside target is: 5290 - 5288 then 5270
/NQ upside target is: 18,625 - 18,600
Key Levels: 18,530 - 18,515 POC and Overnight Low
downside target is : 18,445 - 18,425
/RTY upside target is: 2119 - 2125
downside target is: 2080 - 2076
Economic Data:
Durable Goods @ 8:30 AM EST
Case Schiller Home Price Index @ 9:00 AM EST
Consumer Confidence @ 10:00 PM EST
More Color.......
/ES - Key area of Demand at $5270-5280 then at $5230-5245 Bull flag on (4hr)
- Supply above at $5322.75 - 5310 (5m) HOD
- Sellers at the open trapped above $5270 looking to play long targeting $5300
- I would only like to play short if price can break below AND hold $5230
SPY - Key Demand $518-519 with Supply above at $523-524 HOD
- Bull flag on the hourly break out to the upside looking to play long after pullback
- I would only like to play short if price can break and hold below $519 targeting $516 ( Demand) then below that nearest demand isn’t until $511-509
SPX - Key Demand at $5180- 5190 with Supply Gap Down at $5235-5220
- If buyers fail to reclaim above $5240 at the open I will look to play short. A breakout above and I will look for a break and retest above $5230 to play long.
- Sell off at the open where Bears are trapped above $5180 looking to play long
/NQ - Key Demand at $18475-18520 with Supply above at $18710 - 18660
- Ideally want to play long after a sell off at key demand playing a break and retest from $18500 targeting $18530 then $18550
QQQ - Key Demand at $442 from yesterday with Supply at $447-446
- I would like to play from $444 targeting $445 first then $446
- I would only like to scalp short if price can break and hold below $444
As ALWAYS, have your stops in place!!!
Have a great day!
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