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Good Wednesday morning,
There were two very sharp, violent liquidation breaks yesterday, however, as the current playbook suggests, buyers jumped right back in and took the prices back up. There doesn't seem to be a care in the world at this time, and once the dust settled, the bulls still won the day, again. At this time, as the picture above shows, stay long but protect profits at all costs. Just like I mentioned yesterday, I am not saying we are going to break lower, but the risk is now increasing each day as the market keeps melting up, so this is what has me concerned. Bias is still long but be ready to protect and lock in gains.
As we enter today, futures are up across the board, and just ripped higher on the CPI report (Consumer Price Index). Price has now reached our upper targets, so let's see if price holds, or do longs take advantage of this move and sell?!?!
In the profile pic and key levels below, you can see the spike up to targets, however, sellers have come in after the pop. It will be very simple for today. The first key level is prior highs at 6049.50, and then down to 6026, which is half-back and POC. As long as price remains over those levels, the bulls are in control, period. If price moves below 6049.50, look for a move to the POC at 6026, and then IF that level is taken out, look for 6015, and then lower targets of 6000 - 5990.
Futures are currently trading at 6058 at the time of this writing.
VPOC Update: No new VPOC's were added or taken out yesterday, so we still have 4 above and 23 below. 6063.75 is the closest above, and with this move pre-market, price is very close to taking it out! For a VPOC to be taken out, it needs to be traded through during regular market hours, 9:30 a.m. EST - 4:15 p.m. EST. 5970 is the closest below price and most likely not in play today.
TARGETS AND KEY LEVELS TO WATCH:
/ES upside target is: 6070 - 6080 then 6100 - 6125
Key Levels: 6049.50 Prior high and 6026 POC & 1/2 Back
downside target is: 6025 - 6015 then 6100 - 5990
/NQ upside target is: 22,200 - 22,230
Key Level: 21,992.25 Prior high then 21,870 POC
downside target is : 21,800 - 21,750
/RTY upside target is: 2185 - 2195
downside target is: 2160 - 2150
Economic Data : Red / Green Start Events
MBA Mortgage Applications @ 7:00 AM ET
CPI @ 8:30 AM ET
EIA Petroleum Status Report @ 10:30 AM ET
Treasury Buyback Announcement (Preliminary) @ 11:00 AM ET
4-Month Bill Auction @ 11:30 AM ET
10-Yr Note Auction @ 1:00 PM ET
Treasury Statement @ 2:00 PM ET
More Color By : Rich Rickus
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/ES - Key Demand 6005 with Supply above at $6050
Bullish : Sellers trapped above $6005 looking to play a break and retest above $6010 long targeting $6050 then $6060
Bearish Buyers trapped below $5900 looking to play short after a break and retest below $5890 targeting $5825 then a break down into $5700s
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SPY - Key demand at then at $588-589 with Supply above at $600
Bullish Sellers trapped above $589 looking to play a break and retest from $590 long targeting $593 then a breakout mid high $595s
Bearish Buyers trapped below $589 after a break and retest below $588 targeting $587’s then a breakdown into $586’s
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/NQ - Key demand at $21390 then at $21600 with Supply above at $21935-21900
Bullish Sellers trapped above $21600 looking to play a break and retest above $21645 long targeting $21700 then a breakout back into low $21800s
Bearish Buyers trapped below $21435 looking to play short from below $21390 targeting $21200 then $21100s
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QQQ Key Demand at $521-522 with Supply at $533-534
Bullish Sellers trapped above $524 looking to play a break and retest from $525 targeting $526 then a breakout into low mid $528’s
Bearish Buyers trapped below $521 looking to play a break and retest short from $520 targeting $519 then $516
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AMD - Key Demand at $112 with Supply above at $120
Bullish - Sellers trapped above $113 after a break and retest from $114 looking to play LONG targeting $116 then a breakout into $118s
Bearish - Buyers trapped below $112 after a break and retest from $111 to play short targeting $109 then breakdown into $107s
Have a great day!
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