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Good Monday morning!
As we start into the second trading week of the new year, the bulls managed to defend several key levels on the charts last week and those key levels that we will be watching moving forward will be 5866 in the ES futures and 21,000 in the NQ's. The S&P managed to double bottom on Friday, December 20th and also Thursday, January 2nd 2025, so that was a strong statement from the bulls. The question now is, will they be able to keep it going? If buyers remain committed, then the next upside target is going to be 6014.50, then 6025 and then 6060 in the ES. For the NQ's next upside targets will be 21,725 then 21,900. Well, this morning, the buyers have already taken price above 6014.50 and also 6025 on a gap higher so this is further data that shows the buyers are right back into their operations. NQ futures are already trading @ 21,720 currently.
For today, it will be about the first key line in the sand @ 6014.50 which is a prior VPOC, which price is currently above, and we are also already up to our first target area @ 6025-6035! This is very bullish! If buyers can keep price above 6014.50 and above 6035, then look for our next upside level @ 6060.
Now IF sellers come back in and take price back down below 6014.50, then look for a gap fill back to Friday's high @ 5998 then the POC @ 5987.50 then overnight low @ 5980. Only if these levels get taken out and tempo and momentum are picking up steam to the downside, then look for lower targets! Futures are trading @ 6033 at the time of this writing.
VPOC Update: Yes a new VPOC was added Friday but this time back below current price. Friday's low was 5934 and the POC (Point of Control) from Thursday was @ 5917.75 so this was untouched or not tested during the day on Friday, so that is why this is a new VPOC.
We still have 5 above with the closest one @ 6014.50 then 6100 and back to 27 below current price with the closest one now sitting @ 5917.75. This takes a little bit of pressure off of the bulls.
TARGETS AND KEY LEVELS TO WATCH:
/ES upside target is: 6025 - 6035
Key Levels: 5987.50 POC then 5966 1/2 Back
downside target is: 5950 - 5940
/NQ upside target is: 21,700 - 21,735
Key Level: 21,514 POC then 21,411 1/2 Back
downside target is : 21,350 - 21,325
/RTY upside target is: 2295 - 2310
downside target is: 2265 - 2257
Economic Data: Light DAY
Lisa Cook Speaks @ 9:15 AM ET
PMI Composite Final @ 9:45 AM ET
Factory Orders @ 10:00 AM ET
Treasury Buyback Announcement (Preliminary)
More Color....... By Analyst Rich Rickus
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ES - Key Demand at $5960 - 50 with Supply at $6035
Bearish
Buyers trapped below $5960 after a pullback below $5955-50 looking to play SHORT targeting $5910 then $5885
Bullish
Sellers trapped above $5960 after a break and retest above playing LONG targeting $6020 Thursday HOD at $5995 then $6000
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SPY - Demand at $594 with Supply at $598
Bullish
Sellers trapped above $594 after a GAP and GO from $595 targeting $597 then $599
Bearish
Buyers trapped below $594 after a retest from $593 targeting $591 then breakdown into $590
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/NQ - Key Demand at $21440-50 with Supply above at $21800
Bullish
Sellers trapped above $21440 looking to play long after a pullback holds above $21450-55 targeting $21600 then $21650
Bearish
Buyers trapped below $21350 looking to play SHORT after a pullback holds below $21300 targeting $21550 then $21500
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QQQ - Key Demand at $517 with Supply above at $523-524
Bullish
Sellers trapped above $517 looking to play long from a break and retest at $518 targeting high $520s then a breakout into $522s
Bearish
Buyers trapped below $517 after a break and retest below $516 looking to play short targeting $514 then mid high $512s
Have a great day!
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