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Good Monday morning!
We hope you had a great weekend and in case you missed what happened on Friday, it was one of the wildest days I can remember with incredible intraday opportunities!
First the market ripped higher off of the PCE numbers at 8:30 AM EST, then at the opening bell, sold off almost 70 points in the S&P and almost 420 points in the NASDAQ, but that's not even the best part!!!!
Right around 12:20 PM EST, the sellers stopped their operations and the buyers started slowly accumulating positions. Then about 30 minutes later, the buying starting getting more aggressive and the bulls basically did not stop buying and took the markets on one of the biggest short squeezes I have seen in a very long time...over 100 points from the lows of the day to new highs and NASDAQ took the 400 point loss back!
Both our lower AND upper targets were hit. It was incredible seeing this kind of strength!! The last 20 minutes of trading was absolutely spectacular....those last 20 minutes alone accounted for 57 of the 100+ point rally! Very rarely do we see these kinds of massive swings intraday but Friday was one of those days!
Some people said it was "End of Month" buying, while others said it was a massive short squeeze as the market was oversold and had dropped sharply from the "NVDA high" back on May 23rd. For me, it was a perfect pullback to our first target of 5193...the SPX low Friday was 5191.68!!!!!
Just a quick reminder of the targets I gave you back on Thursday morning!!!
"When SPX cash takes out 5257, this could lead to further downside and my targets are 5193, then 5148 followed by 5100. THIS DOES NOT MEAN IT WILL HAPPEN ALL IN ONE DAY!!!! Please understand this. It could take several days to a week for these levels to play out. We are already getting a bounce this morning so look to sell into strength."
Well it only took 2 days to hit our first target and that was a perfect touch of the 38.2% Fib retracement from the April 19th low to the May 23rd high! So whether it was end of month buying or a short squeeze or my retracement or a combination of them all, I really hope you used this information to the best of your advantage!!
Futures are 100% net long this morning however it is not a true gap as we are inside of Friday's range. Please pay attention to the profile pic below for key levels and targets! Let's see if the buyers can hold the huge bounce back from Friday!
SBUX: Pullback rebound continues. I will still look to add more over $81.25 and I'm moving stop @ $78.50.
VPOC Update: With the massive intraday swings, both an upper and lower VPOC's were taken out. 5288 and 5230 were erased! We now have 1 above @ 5325 (which could be in play today) and 20 VPOC's below current price levels.
TARGETS AND KEY LEVELS TO WATCH:
/ES upside target is: 5320 - 5325
Key Levels: 5295 - 5290 Settlement & Overnight Low
downside target is: 5270 - 5265
/NQ upside target is: 18.710 - 18,735
Key Level: 18,632 Friday's high
downside target is : 18,500 - 18,480
/RTY upside target is: 2087- 2091
downside target is: 2057 - 2054
Economic Data:
PMI @ 9:45 AM EST
ISM Manufacturing @ 10:00 AM EST
Construction Spending @ 10:00 AM EST
More Color.......
/ES - Key demand at $5250-65 with Supply above at $5350-68 HOD
1. A breakdown below $5266 and holding I will look to play short targeting
$5195 then $5180
2. Buyers trapped above $5266 after a break and retest I will look to play
Long targeting $5300 then $5310
SPY - Key Supply flipped to Demand $525 with Supply above $529-530
1. Sellers trapped above $525 looking to play long off a break and retest
target $527 then $528
2. Buyers trapped below $524 after a break and retest looking to play short
targeting $519-518
SPX Key Demand at $5250-60 with Supply above $5280-52904
1. Sellers trapped above $5260 looking to play long targeting $ $5285 then
$5300
2. A breakdown below $5260 after a break and retest looking to play short
targeting $5250 then $5240
/NQ Key Supply flipped to Demand at $18615 -18630 Supply at $19790-18730
1. As long as price above $18615 I want to be playing long off pullbacks /
dips
2. A breakdown below $18615 and hold as resistance I will look to play short where Demand flips back to Supply
QQQ Key Demand at $450 with Supply above at $455 -456
1. Sellers trapped above $450 looking to play long off a break and retest
from $452 targeting $454-456
2. Sellers trapped at $456 playing short after a bounce below and hold ,
targeting $454 then $453
As ALWAYS, have your stops & targets in place and have a great day!!!
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