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Good Monday morning!
Well the Economist Magazine hit the nail on the head with this weeks cover!! The ever levitating bull market continues. By the way, when even the Economist (a very conservative magazine) is poking fun at the current state of things, you know something is up!
New all time highs were notched again and as I mentioned on Friday morning before the open, the bulls weren't done!
And I quote......."The four day gentle pullback has quickly broken back to the upside and you can see it in the profile picture below. As I said the past few days there is no aggressive selling and there is still no fear in the markets, so the bulls are still firmly in control even after 4 days down. These kinds of moves happen when a market gets stretched to the upside....there needs to be some pullback and consolidation and that is exactly what just happened."
Well basically from 10:00 AM EST in the morning until 2:30 PM EST in the afternoon, the buying lasted a solid and impressive 4 1/2 hours, and the bears got trampled like ants under a herd of elephants!!! That key level of 5100 held like a champ and upper targets (5125) were hit and even surpassed! These kinds of days do NOT happen very often but when they do, they can either make your entire month or ruin your year!!!!
By the way, the thing about days like Friday is that they are very difficult to see ahead of time and it always looks easy after the fact. There is no way to know this type of day is coming although the institutions definitely had the "buy button only" turned on for most of Friday so they knew something!!!!
Futures are mixed this morning and we are inside of prior days range. The market continues to be stretched to the upside however there is ZERO fear in this markets right now so game is still to the upside. Friday's breakout to new highs shows how value developed much higher so now we must monitor if these new levels hold.
In the profile pic below, anything that remains above the prior all time high of 5123.50 and 1/2 back from from Friday 5125 tells us that bulls remain firmly in control. Taking out the overnight high of 5146 and Fridays high of 5149.25 then look for upper targets. Any price action in between these levels tells us the market it taking a break and will "balance" to digest the big move! Only losing 5125-5115 would possibly change the tone of this market. By the way, according to current data, the chances of taking out 5115 are only 15% as of the time of this writing!!
And yes you guessed it...we have added yet another new VPOC below so we now have 18 untested points of control below current price. Another new record number!
TARGETS AND KEY LEVELS TO WATCH:
/ES upside target is: 5165 - 5175
downside target is: 5120 - 5115
/NQ upside target is: 18,425 - 18,450
downside target is : 18,225 - 18,200
/RTY upside target is: 2085 - 2095
downside target is: 2060 - 2057
Economic Data:
No Economic Data Today
FED Member Patrick Harper speaks today @ 11:00 AM EST.
More Color.......
NVDA - Bullish. Key demand now anything over $824.... buyers ares still present. No short yet. Target $850 then $875
META - Bullish. Key demand remains over $495. No short yet. Target $525.
AAPL= Bearish. Supply still coming into this stock. Lost key support @ $179. Back over $179-$180 could be a buy the dip and short covering rally!
Have a great day!
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