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Good Wednesday morning!!
Will it break back to sunshine or back to dark storm clouds in the upcoming trading session?!!? I say that because while it looked dark and ominous recently, there was yet another goal line defense (if you will) by the bulls, as the markets were sharply lower going into the opening bell yesterday, however, buyers stepped in aggressively and took price out of the gap below and back above key levels!
The S&P lower target of 5783 is still in play, HOWEVER, as long as price is above 5855 then put that on the back burner for now!! In the ES futures, 5822 is also still in play but as long as buyers keep price above 5876 then hold off on your aggressive short plays. Sorry folks but that is just the way it is at the present time. Buyers and sellers are on this huge merry go round and moves both higher and lower are subject to change and change quickly! You must stay fluid with this market!
Overnight inventory is net long but we are back and forth between a true gap and not at the present time. Any open above yesterday's high @ 5947.50 is called a "true gap", however price keeps vacillating above and below and is currently back in prior day range. Gaps are important because they are a change, or "reorder" in thinking. If a market gaps above (or below) a prior days range then that is valuable information. If the gap holds and does NOT get back into range, then that is even more telling!!!
In the target levels and profile pic below, the first key level is 5947.50 which of course is prior day high. Any price above that level is edge to the buyers so let's see if that holds, and then if it does, look for upper targets. Any price between 5947 - 5939 is "balance" so consider that range "Switzerland", or neutral, if you will! Any break below 5939 then look for lower targets. Futures are trading @ 5945 at the time of this writing.
VPOC Update: Same as yesterday. No new VPOC's were added so we have two above current price @ 6004 and @ 5957.25 and 28 below where current price is trading. Closest one below is @ 5801.
TARGETS AND KEY LEVELS TO WATCH:
/ES upside target is: 5960 - 5970
Key Levels: 5947.50 yesterday's high then 5939 POC
downside target is: 5915 - 5905
/NQ upside target is: 20,900 - 20,935
Key Level: 20,768 POC
downside target is : 20,645 - 20,610
/RTY upside target is: 2345 - 2355
downside target is: 2325 - 2310
Economic Data:
MBA Mortgage Applications @ 7:00 AM ET
Atlanta Fed Business Inflation Expectations @ 10:00 AM ET
EIA Petroleum Status Report @ 10:30 AM ET
Treasury Buyback Announcement @ 11:00 AM ET
Lisa Cook Speaks @ 11:00 AM ET
4-Month Bill Auction @ 11:30 AM ET
Michelle Bowman Speaks @ 12:15 PM ET
Baker Hughes Rig Count @ 1:00 PM ET
20-Yr Bond Auction @ 1:00 PM ET
Treasury Buyback Results @ 2:00 PM ET
More Color....... By Analyst Rich Rickus
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/ES - Demand at $5920-35 with Supply at $5970-80
Bearish
Buyers trapped below $5970 after a pullback below $5960-55 looking to play SHORT targeting $5910 then $5890
Bullish
Sellers trapped above $5970 after a break and retest above $5970-75 playing LONG targeting $5988 then $6005.
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SPY - Demand at $583-584 with Friday Supply at $591-590 then above that at $594-595
Bullish
Sellers trapped above $591 after a break and retest above $592 looking to play LONG targeting $593 then high $594
Bearish
Buyers trapped below $591 after a retest from $590 targeting $589 then $588.60
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/NQ - Key Demand at $20700-750 with Supply $20900-55
Bullish
Sellers trapped above $20730 looking to play long after a pullback holds above targeting $20870 then $20900
Bearish
Buyers trapped below $20700 and holding below $20675 looking to play short targeting $20550 then $20475
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QQQ - Key Demand at $500-501 with Supply above at $505-507
Bullish
Sellers trapped above $501 looking to play long from a break and retest at $502 targeting $504 then $506
Bearish
Buyers trapped below $501 after a break and retest below $500 looking to play short targeting $498 then low $497.33
Also watching …
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AMD Key Demand at $137.55 with Supply above at $141
Bearish
- Buyers trapped below $137 looking to play a Short after a pullback below $136.77 targeting $135 then new LOD
Bullish
- Buyers trapped above $139 playing a break and retest from $140 looking to play Long targeting $141 then $143
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TSLA Supply flipped to Demand at $332-333 with Supply at $348-346
Bearish
Buyers trapped below $340 after a break and retest from $339 looking to play SHORT TARGETING $ $337 then new $336
Bullish
Sellers trapped above $340 after a break and retest from $341 looking to play long targeting $343 then $345
Have a great day!
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