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Good Tuesday morning!
We are going to keep it short and sweet. As we mentioned yesterday, the bulls regained control and you can see in the profile pic below, we had back to back value areas (read: balance) and now this morning we have a true gap higher on overnight inventory that is net long. Not 100% but still net long. We may or may not fill the gap because a day like this is creating shock and awe and downright panic for those operators who are short the market!!!
They could be in for some more pain today and I say this because the FED starts their two day meeting today with the rate cut announcement Wednesday afternoon @ 2:00 PM EST, followed by FED Chair Powell press conference @ 2:30 PM EST, and market participants are expecting a rate cut of possibly 50 basis points. At the time of this writing there is a 63% chance of that happening so this should help keep buyers active and engaged putting short players in continued pain!
Please check out the profile pic and key levels and ranges below. Any price action that stays above 5709 is bullish and will remain that way for the day. If there is a pullback, expect the double top @ 5702 to be tested and then maybe 5696.75. If these levels are tested they "should hold" and "should be" bought, however, if they are not and the selling intensifies, then look for lower targets! One last thing, yesterday was rollover and we are now trading the "Z24" contracts in the futures we track!
VPOC Update: No new VPOC yesterday. We still having 2 above and now back to 22 untested points of control below.
TARGETS AND KEY LEVELS TO WATCH:
/ES upside target is: 5715 - 5725
Key Levels: 5709 Overnight 1/2 Back and 5696.75 POC
downside target is: 5680 - 5670
/NQ upside target is: 19,760 - 19,785
Key Level: 19,700 Prior day high
downside target is : 19,580 - 19,560
/RTY upside target is: 2235 - 2400
downside target is: 2200 - 2190
Economic Data:
FOMC MEETING BEGINS TODAY
Retail Sales @ 8:30 AM EST
Industrial Production @ 9:15 AM EST
Business Inventories @ 10:00 AM EST
Housing Market Index @ 10:00 AM EST
More Color....... By Analyst Rich Rickus
/ES - Demand at $5620-40 then at $5540 with Supply at $5700-5710
Bearish
Buyers trapped below $5615 and holding below after a pullback looking to play SHORT targeting $5600 then $5587
Bullish
Sellers trapped above $5620 after a break and retest playing a gap and go from the weekend GAP fill targeting $5615 then $5628
SPY - Demand at $558-557 w / Supply at $564-563
Bullish
Sellers trapped above $557 after a break and retest from $558 looking to play LONG targeting $559 then $561
Bearish
Buyers trapped below $558 after a retest from $557 targeting $554 then $553
/NQ - Key Demand at $19500 then at $19550 with Supply at $19785
Bullish
Sellers trapped above $19700 looking to play long targeting $19855
Bearish
Buyers trapped below $19500 and holding , looking to play short targeting $19450 then$19405
QQQ - Key Demand at $471-470 with Supply above at $476-477
Bullish
Sellers trapped above $470 looking to play long from a break and retest at $471 targeting $473 then $474
Bearish
Buyers trapped below $470 after a break and retest below $469 looking to play short targeting $468 then at $467
AMD - Key Demand at $148-150 with Supply at $155
Bearish
Buyers trapped below $148 after a break and retest from $147 playing Short targeting $145 then $144
Bullish
Sellers trapped $147 looking to play long from $148 targeting $150 then $151
Have a great day!
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