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Good Tuesday morning!
We hope you all enjoyed the long weekend and are ready to jump back into things!?! The markets actually sold off Friday into the close which is very unusual for this current trend, but between that and the "secure high" we can now see (a secure high is a high book-ended by two lower highs), there is the possibility that we "might" go lower! Stormy seas possibly ahead?!?!
The profile pic shows the key levels and whichever side wins, the bulls or the bears, then you can see where we can go today. If the sellers keep it below Fridays lows of 5012.75, then we would be looking for the 4985-4980 target area. If the bulls buy the markets back up into Fridays range, then we will be targeting 5040-5045. That's it! Just stay alert and also how we close today will give us more data for tomorrow.
Quick recap from last week: Last Monday the 12th when the markets sold off, it seemed like a bearish scenario was setting up, but of course the pullback didn't even last 24 hours and the buyers took it almost all the way back to those 5066.50 highs. Futures only went to 5059.25.
The fact that the markets sold off Friday and sellers came in around 2:30 PM EST, and the markets did not break to new highs, which has been the status quo as of late, tells me that buyers are getting a bit tired and may not be as enthusiastic to keep chasing these nosebleed prices! If we close below the downside targets of 4985-4980, then 4971.75 then the lows of February 13th (4936.50) will be the next target areas! And by the way, please note, I am not saying this will definitely happen today but these are the future target numbers! Anything back into Fridays range keeps things status quo then upper targets would be in play.
As far as value and untested points of control, we had value overlapping as you can see in the profile pic below (yellow shaded areas) so if we build value higher or lower than Thursday and Friday, we will see who is taking control. We still sit with 17 untested points of control below.
TARGETS AND KEY LEVELS TO WATCH:
/ES upside target is: 5040 - 5045
downside target is: 5015 - 5005
/NQ upside target is: 17,875 - 17,900
downside target is : 17,725 - 17,700
/RTY upside target is: 2069 - 2072
downside target is: 2030 - 2025
Economic Data Today: *Light*
Leading Indicators @ 10:00 AM EST
More Color.......
/ES - Key Demand at $4970-4955 with Demand looking to flip to Supply at $5020-5010
- Sell Off at the open with price holding above $4970 looking to play long
- Buyers trapped below $5010 with no follow through to the upside I’ll look short
- Key Demand below $4950 at $4930 LOD - 4940
SPY - Consolidating below Demand at $498-499 with previous Demand at $494-495
- Sell off at the open with price holding above $495 playing a break and retest long from $494 targeting $497
- Buyers trapped below $500 to play a break and retest short from $499
- Ideally I would like to see $498 turn into Supply or breakout above $500
SPX - Key Demand at $5,000-5010 with Supply at $5040-5050 HOD at $5048
- I would only look to play short if price can break and hold below $4985
/NQ - Key Demand zones at $17670-17700 then at $17540-17550
- Demand flipped to Supply at $17850-17820 with previous supply at $17965
QQQ - Demand flipped to Supply at $428-430 then below Demand at $425-426 LOD
- I would like to play long , buying dips inside of key demand
Also watching…
AMD - Key Demand zone at $165-167 with demand flipped to supply at $173
- I would liken to see a sell off into $166-165 hold above $164 to play a break and retest Long targeting $168 first then 171
- Buyers at the open failure to break above $173 with a retracement below $171
I will look to play short off a break and retest targeting $169 first then $168
TSLA Key Demand area at $190-182 with Supply at $198-200
- Sell off at the open holding above $191 looking to pay long
Capital One (COF) buying Discover Financial (DFS) in an all stock transaction worth $35.3 billion.
Have a great day and see you tomorrow!
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