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Good morning,
Yesterday the markets started off strong and it looked like the bulls were going to take it out and above Tuesday's consolidation range to the upside, however, the sellers flipped the tables and took it below prior days range and that key level of 5090 was eviscerated!
I really hope you are taking advantage of this information because if that level was lost, we were calling for 5050-5040 and yesterdays low was 5047!! This is why we give you both upper AND lower target levels because the markets can do anything at anytime....you must stay fluid and consider all possibilities!
Also, an important data point from yesterday was also a clue as to market direction, and as we noted yesterday morning:
"Well yesterday's high was only 5123.25 as the market was in a relatively tight and very choppy range! And by the way, that high level was only achieved because of a quick spike up and then right back down when FED Chair Powell was speaking, so we got a decent amount of "color" from Tuesdays trade...and that is: bears are still in control for now!!"
So yes the downside move comes as no surprise. The other thing we have been talking about has been the amount of insider selling recently! They have been ringing the register for WEEKS now and it is all starting to catch up, and those that chased and bought higher during that time are in serious pain right now. We have been warning you about this for weeks!!!
In the profile pic below, if we can stay below the overnight high and 1/2 back from yesterday at the 5083-5085 range, then look for the overnight low and POC to be tested. Anything above the 5085 area look for upper targets of 5100-5105. Any price action that stays between 5063-5083 is chop and consolidation!
If sellers take out the overnight low and POC between 5063-5060, then look for lower targets of 5040-5035.
VPOC Update: No change....we have 2 above @ 5297.75 and 5151.50 and we now have 16 still below with closest one @ 5033.75 so this could be in play today!
TARGETS AND KEY LEVELS TO WATCH:
/ES upside target is: 5100 - 5105
Key Level: 5083 - 5085 Overnight high and 1/2 Back
downside target is: 5040 - 5035
/NQ upside target is: 17,850 - 17,875
Key Level: 17,788 - 17,771 Overnight high and 1/2 Back
downside target is : 17,525 - 17,500
/RTY upside target is: 1990- 2000
downside target is: 1945 - 1935
Economic Data:
Jobless Claims @ 8:30 AM EST
Philly Fed Manufacturing Index @ 8:30 AM EST
Existing Home Sales @ 10:00 AM EST
Leading Indicators @ 10:00 AM EST
Natural Gas Inventories @ 10:30 AM EST
**FED members Bowman, Williams and Bostic all speak today!
More Color.......
/ES - Key Supply zone Monday - Wednesday at $5130-5120 then at $5215- 5205
1. Buyers trapped at the open below $5130 playing short targeting $5100 & $5058
2. I would only like to play long if buyers can reclaim support above at $5135 off a break and retest targeting $5160 then $5180
SPY - Key Supply zones from earlier this week at $506 - 504 with Demand at $499
1. Buyers trapped below $506 looking to play a break and retest short target $503
2. I would only look to play long if buyers reclaim support above $507 target $509
SPX - Key Supply from this week at $5082 - 5070 with Demand below at $5007 LOD
1. Buyers trapped at the open $5090 looking to play short targeting $5060
2. I can only look to play long is buyers reclaim support above $5090
/NQ - Key Supply zones at 18000 -17950 and $17800 with Demand at $17615-17650
1. Buyers trapped below $18000 playing a break and retest short targeting $17880
2. I would only look to play long if buyers can reclaim support above $18000
QQQ - Key Supply zone this week at $434-433 then $437 -439 with demand at $422
- Buyers trapped inside this week Supply below $434 playing a break and retest short targeting $432 then $430.
- Bounce after a sell off from 4hr Demand at 422-421 Demand targeting $424
AMD Key supply at $160-159 then at $165 with demand at not until $147
- Looking to play short from key areas of supply after break and retest
AAPL Key supply at $170 with Demand below at $167-168
1. Buyers trapped at the open looking to play a break and retest short from
$170 targeting $168 Demand. A bounce from $167 where buyers are
trapped I will look to play long targeting new HOD after a pullback.
As ALWAYS, have your stops in place!!!
Have a great day!
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