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Good Wednesday morning!
For the third day in a row now, early weakness in the trading session has been bought and the secure low.....is well....still secure! The S&P also closed over 5280 so that tells us that the trend into the remainder of the week is higher. Remember nothing is guaranteed but the odds favor it!!
Futures are sharply higher this morning across the board and overnight inventory is 100% net long. It also looks like we will open with a true gap outside of yesterdays range. Remember when this happens there is a good chance we fade lower to balance out the inventory but even that is not guaranteed. This current environment is very bullish and people keep chasing stocks higher so it might be a gap and go or a gap and hold at the very least.
You can see in the profile pic below that price has broken above the triple top so as long as we stay outside of this area, the bulls remain firmly in control. If there is a fade lower, then target 5313 first and then the overnight low @ 5302 and then the double top in the Value Area @ 5297. More selling would bring us to 5285-5275 but that is not a high probability trade today unless something crazy happens or some kind of unexpected news event comes out!
SBUX: Acted well again so moving stop higher and targets remain the same. Stop is now $80.00 and target is between $84.50 - $87.50 which (for a quick reminder) is a gap fill from 4/30.
VPOC Update: My apologies as there was a new VPOC added below price on Monday @ 5230.25. (Monday's low was 5246.75) No change yesterday (Tuesday). We have 1 still above @ 5325, which is definitely in play today, and 21 VPOC's below current price levels.
TARGETS AND KEY LEVELS TO WATCH:
/ES upside target is: 5330 - 5335
Key Levels: 5313 Triple Top
downside target is: 5285 - 5275
/NQ upside target is: 18.840 - 18,860
Key Level: 18,595 - 18,7600 Double Top
downside target is : 18,675 - 18,625
/RTY upside target is: 2060- 2065
downside target is: 2025 - 2015
Economic Data:
ADP Employment Report @ 8:15 AM EST
PMI Composite @ 9:45 AM EST
ISM Services @ 10:00 AM EST
Crude Inventories @ 10:30 AM EST
More Color.......
/ES - Consolidating In Supply above at $5315-5305 Key demand at
$5245-5265
1. A breakdown below $5246 and holding after a pullback I will look to play short targeting $5220
2. Sellers trapped above $5266 after a break and retest I will look to play
Long targeting $5300 then $5310
3. Buyers trapped below $3505 after a breakout and no follow through ,
looking to play short from Supply at $5305 targeting $5285
SPY - Key Demand $524-525 with Supply above at $529-530
1. Sellers trapped above $525 looking to play long off a break and retest
target $527 then $528
2. Buyers trapped below $524 after a break and retest looking to play short
targeting $521
SPX Key Demand at $5234-40 with Supply above $5340-5320
1. Key level for me will be watching how buyers react at $5305. A breakdown below and retest I will look to play short targeting $5260
2. A breakout above and retest I will look to play long targeting $5330
/NQ Consolidating Inside Supply at $18700
1. Buyers trapped below $18700 looking to play short targeting $18640
2. Sellers trapped above $18500 looking to play long targeting $18595
QQQ Key Demand at $450 with Supply above at $456
1. Sellers trapped above $455 looking to play long off a break and retest
from $456 targeting $458
2. Sellers trapped at $454 playing short after a bounce below and hold ,
targeting $453 then $451
AMD Key Demand at $159-160 with Supply above at $165
1. Buyers trapped after a breakdown below $165 looking to play short off a
retest from $164 targeting $162 then $160
2. I will only look to play long if price can reclaim / hold above $166
As ALWAYS, have your stops & targets in place and have a great day!!!
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