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Good Monday morning!
Last week saw a blast off higher of over 425 points in the S&P, or a move of almost 9% from Monday's lows to Friday's close! Now of course the markets saw a pullback of over 20% recently, but that was overdone in our opinion, and the markets desperately need a pullback anyway! For now, though, the pendulum has swung back to the bulls and I will give you the key levels to watch moving forward to confirm this point!
In the longer term cash market (SPX), as long as price stays over 5490, then the edge remains with the buyers, and my next short term targets are 5571 and then 5645. Please remember this is the cash market! I will give you the numbers to watch in the ES futures markets in a second below. Please note I am not saying we will get to 5571 and then 5645 today, but these are in my crosshairs for now. IF 5490 is lost in the SPX, meaning we have a confirmed close below 5490 today, then all bets are off in the short term.
In the shorter term ES futures markets, in the profile pic and key levels below, as long as price stays above 5517-5511, then the edge remains with the buyers! Any price action that can get above 5551-5554.50, then that is even more bullish and you can look for upper targets at 5590-5600. IF upper targets are taken out then the next stop will be 5620-5630.
Now, if sellers step up their game and take price below 5517-5511, then look for lower targets at 5485-5475. Any price action below that then look for 5460 to 5450.
Futures are trading at 5554 at the time of this writing.
VPOC Update: No new VPOC's were added or taken out Friday, and just like we mentioned, the closest one above is at 5690, and the closest one below is at 5315, and most likely neither are in play today. We have 7 above and 15 below.
TARGETS AND KEY LEVELS TO WATCH:
/ES upside target is: 5590 - 5600
Key Level: 5517 1/2 Back & VAL 5511
downside target is: 5485 - 5475
/NQ upside target is: 19,750 - 19,800
Key Level: 19,400 Overnight low & 1/2 back
downside target is : 19,350 - 19,300
/RTY upside target is: 1980 - 1990
downside target is: 1940 - 1930
Economic Data: Light Today
Dallas Fed Manufacturing Survey @ 10:30 AM ET
3-Month Bill Auction @ 11:30 AM ET
6-Month Bill Auction @ 11:30 AM ET
More Color....... By Analyst Rich Rickus
- /ES - Key Demand $5515-25 with Supply at $5563-70
Bullish : Sellers trapped above $5515 looking to play a break and retest above $5520 long targeting $5540 then $5568
Bearish Buyers trapped below $5510 looking to play short after a break and retest below $5505 targeting $5490 then a break down into $5480
- SPY Key demand at then at $547 with Supply above at $55552
Bullish Sellers trapped above $547 looking to play a break and retest from $548 long targeting $550 then a breakout mid high $552s
Bearish Buyers trapped below $547 after a break and retest below $546 targeting $545s then a breakdown into $544s
- /NQ Key demand at $19400 with Supply above at $19600
Bullish Sellers trapped above $19400 looking to play a break and retest above $19450 long targeting $19500s then a breakout back into low $19600’s
Bearish Buyers trapped below $19380 looking to play short from below $19300 then $19200
- QQQ Key Demand at $470-469 with Supply at $474
Bullish Sellers trapped above $469 looking to play a break and retest from $470 targeting $471 then a breakout into low mid $442
Bearish Buyers trapped below $469 looking to play a break and retest short from $468 targeting $467 then $466s
Have a great day!!
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