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Good Wednesday morning,
Upper targets were nailed once again! 5930-5940 was yesterday's target range, and yesterday's high in the /ES was 5941.75. NASDAQ also hit our upper targets at 21,450-21,470. Yesterday's high reaching 21,488.50.
The game plan yesterday was pretty specific: buy dips, and if we stayed above 5870, then look for upper targets. Price hit 5868.25 and held there for about two and a half minutes yesterday morning, and then buyers reengaged! From there, it was up, up and away! Hence the bullish posture. That kind of gap over the long weekend had shorts scrambling to cover, and traders and investors who were not in the markets had to chase price, hold their noses, and buy!!
In the profile and key levels below, you can see that the price is slightly above the prior high of 5941.75 (at the time of this writing). As long as the price remains above that level, then buyers remain firmly in control. We could easily open below that level so look for a back fill to the POC at 5926.75 if this happens. If more selling comes in, then look for VAL, half-back and top of spike, all around the 5907 - 5899 range! Any loss of 5899, then look for lower targets.
Futures are currently trading at 5945 at the time of this writing.
VPOC Update: Yes, another new VPOC was added yesterday at 5816. That was Friday's POC and we got nowhere near it, especially staying above the shortened Memorial Day session! We now have 7 above (for now) and 21 below! 5948 and 5960 are very much in play today as these are the two closest above.
TARGETS AND KEY LEVELS TO WATCH:
/ES upside target is: 5970 - 5980
Key Levels: 5926.75 POC
downside target is: 5890 - 5880
/NQ upside target is: 21,650 - 21,700
Key Level: 21,435 POC
downside target is : 21,300 - 21,270
/RTY upside target is: 2110 - 2120
downside target is: 2090 - 2080
Economic Data:
MBA Mortgage Applications @ 7:00 AM ET
Richmond Fed Manufacturing Index @ 10:00 AM ET
Treasury Buyback Announcement @ 11:00 AM ET
4-Month Bill Auction @ 11:30 AM ET
5-Yr Note Auction @ 1:00 PM ET
FOMC MINUTES @ 2:00 PM ET
More Color By : Rich Rickus
- /ES - Key Demand $5915-5920 with Supply $5960
Bullish : Sellers trapped above $5915 looking to play a break and retest above $5920 long targeting $5945 then $5960
Bearish Buyers trapped below $5910 looking to play short after a break and retest below $5910 targeting $5880 then a break down into $5850s
- SPY Key demand at then at $585 with Supply above at $592
Bullish Sellers trapped above $586 looking to play a break and retest from $587 long targeting $589 then a breakout mid high $590s
Bearish Buyers trapped below $585 after a break and retest below $584 targeting $582's then a breakdown into $580's
- /NQ Key demand at $21350 with Supply above at $21500-21400
Bullish Sellers trapped above $21400 looking to play a break and retest above $21450 long targeting $21525 then a breakout back into low $21600’s
Bearish Buyers trapped below $2135 looking to play short from below $21325 targeting $21275 then $21250
- QQQ Key Demand at $518 with Supply at $521
Bullish Sellers trapped above $518 looking to play a break and retest from $519 targeting $521 then a breakout into low mid $522
Bearish Buyers trapped below $518 looking to play a break and retest short from $517 targeting $515 then $514
Have a great trading day ahead!
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