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Good morning!
A tale of two tapes...so to speak. The DOW pulled back yesterday and lost about 200 points led by big profit taking in JPM! Other DOW components lost ground as well but after hitting new all time highs, the sellers in JPM couldn't hit the button fast enough and the stock got whacked. On the other hand, the NASDAQ and NDX hit new all time highs led by the FANGMAN and chip stocks once again and the SPX and RUT just put in some muted, sideways action yesterday. The bulls are still in control across the board for now so lets see how today plays out!
Overnight inventory is almost 100% net long again, however, we are squarely within prior days range. NO gap this morning and futures are back to flat and now slightly negative at the time of this writing so it is a coin toss, or jump ball, when the bell rings at 9:30 AM EST.
As you can see in the profile pic below, the overnight inventory is very tight and squat (in the box in the profile pic) so no true edge to either side yet. If we take out yesterday's lows then look for VPOC and lower targets @ 5320-5315! If the prior day low holds, and the buyers take it back above overnight high and 1/2 back from yesterday @ 5336, then look for a move to the POC at 5343.50 then upper targets which will be near new all time highs. The market will show its hand at the bell so watch closely and monitor for continuation. Quick tip: If a level breaks, either higher or lower, then reverses, that is a big tell. In other words from bearish back to bullish or bullish back to bearish is something you should go with most of the time!
SBUX: Holding for now and still looking good. Anything over $77 is exactly what we need.
AMD Will add more over $170.
VPOC Update: A new VPOC was added once again below current price @ 5320! 5335 was taken out above yesterday. We now have 22 VPOC's below current price levels.
TARGETS AND KEY LEVELS TO WATCH:
/ES upside target is: 5345 - 5350
Key Levels: 5336 Overnight high & 1/2 Back
downside target is: 5320 - 5315
/NQ upside target is: 18.830 - 18,860
Key Level: 18,748 POC
downside target is : 18,710 - 18,690
/RTY upside target is: 2123- 2127
downside target is: 2100 - 2097
Economic Data: Very Light Today
Same as yesterday. No economic data although FED members Bostic, Waller, Barr and Williams will all be speaking today. With these speeches comes the potential for increased intraday volatility.
More Color.......
/ES - Key demand at $5266 and $5310 with Supply above at $5350
1. Sellers trapped above $5300 I want to be long, a break and retest targeting $5325 then $5340
2. Buyers trapped after a selloff below $5340 playing a break and retest short from $5335 targeting $5295 then $5280
SPY - Key Demand $523 then below that at $520 with Supply HOD at $531
1. Sell off at the open where buyers are trapped above $528 looking to play
long targeting $530. If price breaks under $525 and holds under $524 after
a pullback I will look to play short targeting $521
2. Sell off below $523 failing to reclaim support above i will also look short
targeting $518.20 then $516
SPX Key Demand at $5290 - 5300 with Supply at $5315 then at $5325
1. Sellers trapped after a bounce above $5300 looking to play long target
$5315
1. A breakdown below $5290 and retest I will look to play short targeting
$5280 then $5267
/NQ Key Demand at $18425-60 with Supply HOD at $18775-95
1. Sellers trapped above $18620 looking to play long off a break and retest
2. A breakdown below $18600 will look to play short targeting $18545
QQQ Key demand at $449-450 with Supply above at $455
1. Sellers trapped above $449 looking to play long targeting $ $451 then $453
2. A breakdown below $449 I will look to play short targeting $437
AMD Key Demand at $164 with Supply above at $169-167
1. Sellers trapped above $164 after a sell off looking to play long targeting
$166 then new HOD
2. I will only like to play short if price can break and hold below $164 targeting
$162
As ALWAYS, have your stops in place!!!
Have a great trading day!
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