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Good Wednesday morning!
Some froth was taken off the top yesterday as all top line figures closed in the red, but make no mistake about it, the bulls are still in control for now. The possibility for more downside in the short term is on the table for today as the futures were lower this morning, but let's see what happens once the bell rings @ 9:30 AM EST!
The reason I say there could be more downside today is that we finally took out the prior day's lows in the S&P, below 5986, and in the ES futures, below 6013. The low of the day in the S&P was 5960 and 5986.75 in the ES! This is definitely a start, but as always, one day does not make a trend!
Now with all that being said, we just had the important CPI data just released and futures exploded higher on the back of the numbers. Inflation came in at expectation levels and market participants took it as a positive. Futures went from red to green in a matter of seconds, but now they are almost back to flat. Choppy seas today is an understatement!!!
As mentioned, futures were lower but reversed sharply after the economic data was released so the edge swung back to the bulls for now. Literally a few minutes later, futures tanked right back down and are all over the map as I am writing this, so please be careful today. As always, please pay attention to the key levels and targets below as they will be very helpful today, just like they were yesterday when we lost 6013. There was an ensuing almost 30 point drop after that level was lost!!!
Any price action that stays above 6015.50 is edge to the bulls, and over our upper targets of 6030-6040 even more so! We could be going up towards 6061. IF price falls back below target zone then towards the POC, and then losing 6015.50 then there could be more aggressive selling. Look for lower targets if 6015.50 and 6011 is lost. Futures are trading right at the POC @ 6015.50 at the time of this writing.
VPOC Update: Once again no new VPOC's added yesterday so will still have 30 below.
TARGETS AND KEY LEVELS TO WATCH:
/ES upside target is: 6030 - 6040 then 6061
Key Levels: 6015.50 POC
downside target is: 5990 - 5980
/NQ upside target is: 21,280 - 21,300 then 21,362
Key Level: 21,183 POC
downside target is : 21,130 - 21,100
/RTY upside target is: 2415 - 2425
downside target is: 2380 - 2370
Economic Data:
CPI @ 8:30 AM ET
Lorie Logan Speaks @ 10:45 AM ET
Treasury Buyback Announcement @ 12:00 PM ET
4-Month Bill Auction @ 12:30 PM ET
Alberto Musalem Speaks @ 2:00 PM ET
Jeffrey Schmid Speaks @ 2:30 PM ET
Treasury Statement @ 3:00 PM ET
Treasury Buyback Results @ 3:00 PM ET
More Color....... By Analyst Rich Rickus
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/ES - Demand at $5985-92 with Supply above at $6015
Bearish
Buyers trapped below $6015 after a pullback below $6010 looking to play SHORT targeting $5995 then $5985
Bullish
Sellers trapped above $6015 after a break and retest above $6020 playing LONG targeting $6035 then $6045
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SPY - Demand at $594-595 with Supply at $597
Bullish
Sellers trapped above $597 after a break and retest above $598 looking to play LONG targeting new $599
Bearish
Buyers trapped below $596 after a retest from $595 targeting $593 then $592
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/NQ - Key Demand at $21050-21100 with Supply $21260-45
Bullish
Sellers trapped above $21260 looking to play long after a pullback holds above targeting $21300 then $21320
Bearish
Buyers trapped below $21100 and holding looking to play short targeting $21025
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QQQ - Key Demand at $513-514 with Supply above at $515
Bullish
Sellers trapped above $513 looking to play long from a break and retest at $514 targeting $515 then $516
Bearish
Buyers trapped below $513 after a break and retest below $512 looking to play short targeting $510 then low $509
Also watching …
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NVDA Key Demand $146 with Supply above at $149-150
Bearish
Sellers trapped below $146 after a break and retest from $145 looking to play short targeting $143 then $141
Bullish
Buyers trapped above $146 after a break and retest from $147 looking to play long targeting $148 then $149
Have a great day!
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