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Good Tuesday morning!
Another day straight up as the shorts are getting crushed and those on the sidelines have been missing out on the huge move higher from the August 5th lows. We are still one time framing higher and this is important! Each day since the August 5th lows we have had higher highs and higher lows and this tells us buyers are completely overwhelming sellers, so you don't want to fight this current game we are witnessing.
HOWEVER, once we see key levels being taken out to the downside, this will be an important tell to tighten up on longs and look to reverse to the short side. Only challenge is WHEN this will happen, but trust me it will!!!
At the present time, the downside support levels, if they are even touched, have been support where traders and investors BUY these dips. What I want everyone to pay close attention to now (since we have been going straight up for 10 days) is that when these levels are NOT BOUGHT, and they get broken to the downside, this will be an early tell to change sides!!
I am not saying this will happen today and we will need more confirmation such as value building lower and the prior days lows being taken out (as just a few example data points) then the tide may start to turn. The whole point I am trying to make is that as we get more and more extended to the upside, the odds and chances of a sharp liquidation break start to rise so stay alert!!
This morning futures are mixed and we are very close to yesterday's high so we may or may not have a true gap at the opening bell. If the bulls can keep price above 5625 then the buyers are still present and remain in control so look for upper targets. If 5625 is lost then the next VERY KEY AREA will be 5602. This is where the Point of Control and 1/2 Back sit so that will be very important as to whether or not the buyers remain committed. If price breaks 5602 the look for lower targets and then possibly even prior days lows where one time framing would stop!!
VPOC Update: No new VPOC's added yesterday but one was taken out above @ 5611.25 because of the relentless buying, so only 5699.50 remains above current prices. We still have 21 untested points of control below current prices.
TARGETS AND KEY LEVELS TO WATCH:
/ES upside target is: 5645 - 5655
Key Levels: 5602 POC & 1/2 Back
downside target is: 5595 - 5585
/NQ upside target is: 19,925 - 19,955
Key Level: 19,725 Bottom of Spike
downside target is : 19,745 - 19,715
/RTY upside target is: 2195 - 2200
downside target is: 2160 - 2150
Economic Data: Light Today
Treasury Buyback Announcement @ 11:00 AM EST
More Color....... By Analyst Rich Rickus
/ES - Demand $5595 - 5600 then at $5570-75 with Supply at $5665
1. Buyers trapped below $5570 and holding below after a pullback looking to play SHORT targeting $5535 $5500 $5488
2. Sellers trapped above $5595 looking to play long targeting $5620 then $5630
SPY - Demand that was previously Supply at $554 with Supply at $560
1. Buyers trapped below $554 after a break and retest from $553 looking to play short targeting $552 then $551
2. Sellers trapped above $554 looking to play long from a break and retest from $554 targeting $556 then $557
/NQ Key Demand at then at $19627 with Supply at $19875 the $20090
1. Sellers trapped above $19627 looking to play long targeting 19700
2. Buyers are trapped below $19625 and holding , looking to play short
targeting $19600 then $19585
QQQ Key Supply flipped to Demand at $476 with Supply at $481
1. Sellers trapped above $476 I want to play long off a break and retest
from$477 targeting $478 then $479
1. Buyers trapped below $475 after a break and retest below $474 looking to play short targeting $473 then $471
Also watching ...
AAPL Key Demand at $219 with Supply above at $224-226
1. Sellers trapped above $219 looking to play long targeting $222 then $224
2. Buyers trapped below $225 after a break and retest from $224 playing short
NVDA Key Supply flipped to demand at $125-126 with supply above at $131
1. Sellers trapped above $125 playing a break and retest from $126 LONG targeting $128 then $130
2. Buyers trapped below $125 and I will look to play short off a break and retest from $124 targeting $ 123 then $122
MU Key demand at $104 then at $100 with Supply above at $110
1. A breakdown below $104 and holing looking to play short off a break and retest from $103 targeting $101
AMD Key demand at $147-$148 with supply above at $156
1. Buyers trapped below $156 after a break and retest from $155 looking SHORT
2. Sellers trapped above $147 playing a break and retest from $148 long targeting $150 then $152
Have a great day!
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