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Good Tuesday morning!
Blast off to new all time highs as we've traded in the balloons for something a bit more powerful!!!! And don't worry, when it comes back down to earth, Elon will catch it!
As we mentioned yesterday morning, the trend is still to the buyers and yesterday they did not disappoint or show any signs of slowing down!!!! With no economic data and no earnings to speak of (or use as an excuse), the markets powered higher on their own strength and the DOW and S&P seemed to have reached the outer limits of space!!!
The S&P cash is now almost 100 points higher than the key level of 5770 we have been mentioning for the past week or two and it feels like the market now wants 6000 in the near future. Yesterday's high was 5861 so 140 points is not a big stretch at this point. And I mean why not, it's only a number. For today, any price action that stays above 5830 in the S&P cash, then edge remains with the bulls.
ES Futures are slightly mixed to flat this morning and we are trading right at a very key level of 5908 which is the POC. Even if price falls a bit, any price action that stays within the value area (which is the yellow shaded area in the pic below), then things remain status quo. We could be in for a balancing day as market participants digest these new all time highs so let's see what happens once the bell rings. Any move above the value area high @ 5914 then look for upper targets.
IF price starts to sell off and breaks 5896, and then lower targets, then and only then would the current trend and tone begin to change! Futures are trading @ 5908 at the time of this writing.
VPOC Update: You guessed it....with the gap and hold, we didn't trade anywhere close to the POC of 5860 so that is now another new VPOC below. Please remember, a VPOC is an untested Point of Control so when price doesn't even touch that from the prior day, it means traders and investors are willing to pay up for stocks! We now have 25 untested Points of Control below with still none above. By the way, you will see in the future, when the trend changes and the markets roll over, you will see VPOC's start to stack up above current price but that is obviously not happening yet and is something for the future!
TARGETS AND KEY LEVELS TO WATCH:
/ES upside target is: 5925 - 5930
Key Levels: 5908 POC & then 5896 1/2 back & value area low
downside target is: 5890 - 5885
/NQ upside target is: 20,725 - 20,750
Key Level: 20,602 1/2 back
downside target is : 20,570 - 20.540
/RTY upside target is: 2280 - 2285
downside target is: 2250 - 2240
Economic Data:
4-Week Bill Settlement
8-Week Bill Settlement
4-Month Bill Settlement
3-Yr Note Settlement
10-Yr Note Settlement
30-Yr Bond Settlement
Empire State Manufacturing Index @ 8:30 AM ET
Treasury Buyback Announcement (Preliminary) @ 11:00 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
Mary Daly Speaks @ 11:30 AM ET
3-Month Bill Auction @11:30 AM ET
6-Month Bill Auction @ 11:30 AM ET
Adriana Kugler Speaks @ 1:05 PM ET
Raphael Bostic Speaks @ 7:00 PM ET
More Color....... By Analyst Rich Rickus
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/ES - Demand ( from Friday )$5840- 50 then at $5865-70 with Supply above at $5919
Bearish
Buyers trapped below $5840 after a pullback below $5830 looking to play SHORT targeting $5815 then $5802
Bullish
Sellers trapped above $5865 after a break and retest above $5870 playing LONG targeting $5885 then $5900
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SPY - Demand at $577 then at $580-581 with Supply above at $585 HOD
Bullish
Sellers trapped above $580 after a break and retest above $581 looking to play LONG targeting $582 then $584
Bearish
Buyers trapped below $580 after a retest from $579 where Demand would flip back to Supply targeting $578 then $577
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/NQ - Key Demand at $20500-20525 with Supply above at $20680 HOD
Bullish
Sellers trapped above $20500 looking to play long after a pullback holds above $20525 targeting $20575 then $20605
Bearish
Buyers trapped below $20500 and holding looking to play short targeting $20445 then $20400
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QQQ - Key Demand at $486- 487 then at $494-495 with Supply above at $498-499
Bullish
Sellers trapped above $494 looking to play long from a break and retest at $495 targeting $497 then $498
Bearish
Buyers trapped below $494 after a break and retest below $493 looking to play short targeting $492 then high $491
Also watching …
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NVDA Key Demand $136-135 with Supply above at $139-140
Bearish
Sellers trapped below $135 after a break and retest from $134 looking to play short targeting $133 then $132
Bullish
Buyers trapped above $135 looking to play long targeting $136 then $137
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AMD - Key Demand that was previously Supply at $162 with Supply at $167
Bullish
Sellers trapped above $162 after a break and retest from $163 targeting $165.20 then $167
Bearish
Buyers trappers below $161 after a break and retest from $160 targeting $159 then $158
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TSLA Key Demand at 213 with Supply at $221-222
Bullish
Sellers trapped above $223 after a break and retest from $224 looking to play LONG targeting $226 then $228
Bearish
Buyers trapped below $218 after a break and retest from $217 playing short targeting $216 then $215
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GOOGL Key Demand previous Supply at $163 with New Supply at $167-166
Bullish
Sellers trapped above $163 after a break and retest from $164 targeting $165 then $166
Bearish
Buyers trapped below $163 after a break and retest from $162 targeting $161 then $160
Have a great day!
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