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Good morning,
Well they did it again! Buyers seem to chase anything that moved yesterday, especially in large cap tech, and new all time highs were made for the 7th time this year in the S&P!! The DOW hit new all time highs 6 times so far and we are still in January!
As I mentioned yesterday morning....
"Friday was another impressive hold by the bulls and we notched new all time highs in the DOW and SPX. The buyers who stepped in Wednesday now have some company as more buyers came in and joined them Friday at these elevated prices. As long as we stay above 4905-4910, then they have nothing to worry about as the current bull trend continues."
Well I thought Friday was a good hold but wow, the break out of balance and short squeeze left bears in a world of hurt yesterday. It was reminiscent of two Fridays ago back on the 19th! There was some news about bond rates dropping which caused markets to rip higher out of its malaise from earlier in the day, however, the fact that we never took out the 4905-4910 area showed that buyers were dug in!
Now I actually don't have a crystal ball like the one above but hopefully you can see how valuable the profile is as it shows where the most amount of time and volume occurs, as well as where value builds, which is very important! It shows us who is in control and who is not! Please be aware....as the market continues to just go up and up and up with no worries in the world, the market is DEFINITELY subject to a liquidation break at some point to balance out this very over long market inventory. Again the only challenge is figuring out when.
The FED starts its two day meeting today with a decision on interest rates tomorrow at 2:00 PM EST (by the was according to the FED funds futures, there is a 98% chance they hold at current levels) and MSFT and GOOGL report tonight after the close! All have the potential to move markets in a big way.
The profile pic below shows some key levels so mark them off and watch them carefully. Tie them in with the targets I give you and it should help with market direction.
Futures are mixed but lower this morning and we are inside of Monday's range. Could this be the day we finally get a liquidation break and it holds rather than magically being bought back up every time?!?! Hmm We shall see! Stay alert!
No new VPOC's and we still sit with 16 untested points of control below us. This rarely happens by the way.
/ES upside target is: 4965-75
downside target is: 4935-25
/NQ upside target is: 17,775-800
downside target is: 17,645-625
/RTY upside target is: 2038-42
downside target is: 2010-08
Economic Data Today:
S&P Case Shiller Home Price Index @ 9:00 AM EST
Consumer Confidence @ 10:00 AM EST
JOLTS @ 10:00 AM EST
**FED Kicks off its two day meeting with announcement on rates tomorrow!
More Color.......
/ES - Supply flipped to Demand post market at $4920-4940 with Demand below at
$4870-90. I would only be interested in longing rallies after a break and retest
SPY - Key Demand at $482-483 then at $485 -486 ( Supply at $490-488 flipped to
Demand , post market. Hard to play off supply until we fall and hold below $481
- As long as price remind above $484 I want to look to play long
- If price falls below $482 I will look to play short on a break and retest
SPX - Supply flipped to Demand at $4890 - 4910
- Looking for sellers to become trapped at Demand with a break and retest
- If Bulls hold and defend $4890 after a breakout and pullback I will look to play
long targeting a new HOD $4912
/NQ - Key Demand at $17405 -17440 with Supply at $17800-17750
- Price must remain and hold below $17400 in order for me to play short
QQQ - Balanced range : Key Demand at $420-422 with Supply at $428-430
- Sellers trapped at the open looking to play long on a break and retest $422.40
Same as yesterday inside a balanced range …
AMD Key Demand between $170-172 and at $174-175 looking to play long off break
and retest after sellers become trapped. I can only play short if price holds below $169
Have a wonderful day!
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