Morning Color

November 21, 2024

Good Thursday morning!!

Yesterday the markets stayed within the prior days range, so again that is what is called balance. Price started off very bearish Wednesday morning as markets sold off sharply right from the opening bell, however, as we have seen several times in the recent past, buyers came back in and took prices higher and the markets closed well off of the intraday lows. Never underestimate the value of a market that goes sideways because it tells us some very good MGI....Market Generated Information! The reason it is important is because once it breaks out of that "balance", then you go with price either higher or lower. And today the breakout is up! The world's most valuable company NVDA reported earnings last night, and while the move was lower initially, it has moved back up today helping futures rise.

Futures are higher across the board with a true gap so far and it is still risk on. This is also evidenced by the fact that GOLD is rallying and BITCOIN is close to breaking the $100,000 mark!

Overnight inventory is balanced so the chance of a fade lower decrease a bit. It doesn't mean we won't pullback at all but the odds go down when the overnight inventory is balanced. When it is 100% net long, or close to it, then usually price will fade a bit (mean go lower on a gap up) to balance out the inventory. That is not the case this morning but let's see what happens once the bell rings.

In the target levels and profile pic below, the first key level is 5944 which of course is prior day's high. Any price above that level is edge to the buyers so look for upper targets. And yes we are already pretty much there! Any price action that gets below 5944 then look for a move back into prior day's range and 5912 would be the first target. Below that look for 5900 - 5895. Futures are trading @ 5966 at the time of this writing.

VPOC Update: Once again, no new VPOC's were added so we have two above current price @ 6004 and while 5957.25 was above us at the closing bell yesterday, because of this large gap higher, it is now below, along with the other 28 below where current price is trading.

TARGETS AND KEY LEVELS TO WATCH:

/ES upside target is: 5965 - 5975

Key Levels: 5944 yesterday's high then 5912

downside target is: 5900 - 5895

/NQ upside target is: 20,920 - 20,950

Key Level: 20,786 Prior day high

downside target is : 20,625 - 20,600

/RTY upside target is: 2355 - 2365

downside target is: 2315 - 2305

Economic Data:

Jobless Claims @ 8:30 AM ET

Philadelphia Fed Manufacturing Index @ 8:30 AM ET