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Good Wednesday morning!
Markets recovered off of the initial sharp drop after the PPI report yesterday morning and now they have ripped higher after the CPI numbers! We have been saying the trend has been higher and bulls were in control and this just further confirms our stance. Now of course anything can happen and this market is due for a pullback or some kind of correction but that day may not be today!!
Overnight inventory is net long and now we have a HUGE gap outside and above of yesterday's range. This does make for a ripe environment for a pullback to balance out the inventory, but sometimes large gaps just hold and consolidate, and that might happen this morning. Use the overnight high or a one minute low for a short opportunity and then monitor for continuation!! Target's are gap fill to prior day high first, and then POC, and then single print area! The market will show its hand so please pay attention to the profile pic below. The KEY levels are there!
SBUX: No change....price target to add over $77 not hit yet but we may get out chance today!
VPOC Update: No new VPOC's yesterday however the lone 1 above @ 5297.75 is obviously in play! We still have 20 below and with this gap today we may just yet add another! Watch 5268.75 closely.
TARGETS AND KEY LEVELS TO WATCH:
/ES upside target is: 5280 - 5290
Key Levels: 5274.25 then 5268.75
downside target is: 5250 - 5240
/NQ upside target is: 18.475 - 18,500
Key Level: 18,433 Prior day high
downside target is : 18,350 - 18,300
/RTY upside target is: 2110- 2115
downside target is: 2085 - 2075
Economic Data: RED STAR EVENTS TODAY!
CPI @ 8:30 AM EST
Retail Sales @ 8:30 AM EST
Empire State Manufacturing @ 8:30 AM EST
Business Inventories @ 10:00 AM EST
Housing Market Index @ 10:00 AM EST
Crude Inventories @ 10:30 AM EST
More Color.......
/ES - Key demand at $5240-5250 with Supply above at $5280-70
1. A breakdown below $5240 and buyers fails to reclaim above I will look to play short targeting $5220 then $5210
2. Sellers trapped at the open playing a break and retest from $5245 trading
$5260 then new HOS
SPY - Key Demand $520-21 with Supply at $ 525-524
1. If sellers fail to break above $521 after sell off I will look to short target
$519
2. A sell off failing to break below $520 I will look to play long targeting $523
SPX Key Demand at $5200-5210 with Supply above $ 5250-40
1. Sellers trapped after a sell off above $5200 that reclaims $5210 after a
pullback looking to play long targeting $5222 then $5240
2. I will only look to play short if price can break and hold below $5200
/NQ Key Demand at $18297-18310 with Supply above at $ 18440- 18430
1. A sell off failing to break below $18295 I will look to play long. If sellers can break and retest below $18300 I will look to play short targeting $18250
QQQ Key demand at $440 with Supply above at $446
1. A breakout have $446 after a pull back and retest I will look to play long
targeting $448
2. Buyers trapped below $440 looking to play short targeting $438 then $436
AMD Key Demand at $145-146 with Supply formed at $156
1. Sellers trapped above $147 after a sell off looking to play long targeting
$149 then $151
As ALWAYS, have your stops in place!!!
Have a great trading day!
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