|
Good Tuesday morning!
Please heed the warning sign above! Yes volatility should increase over the next few days as there is a lot coming up on the economic calendar. It all starts with Jerome Powell, head of the Federal Reserve. He will be delivering prepared remarks and then taking questions from lawmakers on Capitol Hill at 10:00 AM Eastern Time both today and Wednesday. The markets will obviously be on edge as they await further information from the FED Chief. We also have CPI on Wednesday and PPI on Thursday both @ 8:30 AM EST and both big red star events. All in all just get ready for some wild action over the next few days into Friday, where we then have retail sales, import & export prices and industrial production .
Yesterday the key levels and targets worked very well as upper targets were hit, and we just missed our extended target by only one point. After hitting said targets, sellers came in to take price down into the close but the selling in the overnight session has taken us back below prior day's low. As you can see in the profile pic and key levels, we are well below the Value Area, POC, as well as 1/2 back, so this is telling me that there are now a lot of people trapped at much higher prices. The first key line in the sand today is now yesterday's low @ 6067.75. If price cannot get back above that level then we must assume lower prices to come. Not only today but perhaps the next few days!
Now if buyers step back up and take the market back into prior day's range, then look for overnight 1/2 back @ 6075, then VAL and yesterdays 1/2 back @ 6082. Further strength would then target POC and VAH then upper targets. Any price action that stays below 6067.75 then look for lower targets to 6050-6040 then 6028. Futures are trading @ 6065 at the time of this writing.
VPOC Update: Yes a new VPOC was added yesterday below @ 6049 which is in play today. We still have 6148.50 and 6171 above and now 30 below with the new VPOC being the closest to current price.
TARGETS AND KEY LEVELS TO WATCH:
/ES upside target is: 6100 - 6110
Key Levels: 6067.75
downside target is: 6050 - 6040 then 6028
/NQ upside target is: 21,950 - 21,980
Key Level: 21,744 Yesterday's low
downside target is : 21,680 - 21,650
/RTY upside target is: 2315 - 2320
downside target is: 2280 - 2270
Economic Data: Busy Day
4-Week Bill Settlement
8-Week Bill Settlement
4-Month Bill Settlement
NFIB Small Business Optimism Index @ 6:00 AM ET
Beth Hammack Speaks @ 8:50 AM ET
Jerome Powell Speaks @ 10:00 AM ET
4-Week Bill Announcement @ 11:00 AM ET
8-Week Bill Announcement @ 11:00 AM ET
4-Month Bill Announcement @ 11:00 AM ET
3-Yr Note Auction @ 1:00 PM ET
More Color....... By Analyst Rich Rickus
-
ES Demand at $6060-6070 with Supply above at $6110
Bearish
Buyers trapped below $6060 after a pullback below $6050 looking to play SHORT targeting $6040 then $6025
Bullish
Sellers trapped above $6110 after a break and retest above $6115 playing LONG targeting $6140 then $6155
-
SPY - Demand at $603-604 with Supply above at $610-609
Bullish
Sellers trapped above $ 603 after a break and retest above $604 targeting $605 then $606
Bearish
Buyers trapped below $602 after a retest from $601 targeting $599 then breakdown into $598
-
/NQ - Key Demand at $21700 with Supply above at $21960
Bullish
Sellers trapped above $21700 looking to play long after a pullback holds above $21720 targeting $21800 then a breakout into $21900 target last Friday HOD
Bearish
Buyers trapped below $21650 looking to play SHORT after a pullback holds below $21600 looking to play short targeting $21450 then a breakdown into $21300
-
QQQ - Supply flipped to Demand at $523-524 with new Supply above at $532
Bullish
Sellers trapped above $523 looking to play long from a break and retest at $524 targeting high $526 then a breakout into $527
Bearish
Buyers trapped below $522 after a break and retest below $521 looking to play short targeting $519 then mid high $518
Have a great day!
| 
