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Good Wednesday morning!
No, no, no people....you don't drink the bong water!!
Well, after the day we just saw yesterday, I can't blame anyone for the "sippage". lol That was crazy folks!!! We saw the markets tank, take out lower targets, then smash 2 VPOC's below, THEN, reverse and rip 130 points higher in the ES futures just to give back 100 points in 30 minutes!!! The NASDAQ was even crazier! The NQ futures bottomed and then around 11:30 AM EST, buyers came in huge and took the futures up over 700 points!!! AND THEN, bears came back in and took them right back down 400 points!!!! This has been some of the most volatile trading I have seen in a long time! Again, great opportunities but massive risk!!
If you are new to trading, this must seem daunting. Don't worry, it is for us vets too. The only thing I can say at this point is that it is still bearish ever since the Friday, February 21st drop, and the edge remains with the sellers. Also, please remember price is just an advertising mechanism. If price rips or tanks, then reverses, how sticky are those prices? It's all about time and volume as well which gives us "Value"!
In the profile pic and key levels below, you can see the large range we saw yesterday and even though price ripped higher as mentioned above, sellers took price right back down, and unless buyers can take price back above 5815 then 5830 to upper targets, then any price action below these levels is still edge to the bears!! If sellers come in again at the open and take out the POC at 5790 and overnight lows, then look for a retest of prior low at 5744 then lower targets at 5720-5710. Futures are trading @ 5793 at the time of this writing.
VPOC Update: Yes a new VPOC was added above and two were taken out below!! 5956 is now the 5th VPOC above and 5801 and 5744 (was actually yesterday's low!) were taken out so we now have 5 above and 27 below.
TARGETS AND KEY LEVELS TO WATCH:
/ES upside target is: 5845 - 5855
Key Levels: 5790 POC then 5815 then 5830
downside target is: 5720 - 5710
/NQ upside target is: 20,700 - 20,725
Key Level: 20,408 1/2 Back & ON Low
downside target is : 19,995 - 19,955
/RTY upside target is: 2120 - 2130
downside target is: 2060 - 2050
Economic Data:
MBA Mortgage Applications 7:00 AM ET
ADP Employment Report @ 8:15 AM ET
PMI Composite Final @ 9:45 AM ET
Factory Orders @ 10:00 AM ET
ISM Services Index @ 10:00 AM ET
EIA Petroleum Status Report @ 10:30 AM ET
Treasury Buyback Announcement @ 11:00 AM ET
4-Month Bill Auction @ 11:30 AM ET
Beige Book @ 2:00 PM ET
Treasury Buyback Results @ 2:00 PM ET
More Color....... By Analyst Rich Rickus
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/ES - Key Demand flipped at $5740-50 with Supply above at $5800
Bullish : Sellers trapped above $5800 looking to play a break and retest from $5810-20 long targeting $5834 then $5850
Bearish Buyers trapped below $5800 looking to play short from $5790 targeting $5760 then a break down into $5740s
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SPY Key demand at $572 with Supply above at $576
Bullish Sellers trapped above $576 looking to play a break and retest from $577 long targeting $579 then a breakout into $580
Bearish Buyers trapped below $576 after a break and retest below $575 targeting $573 then a breakdown into $572s
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/NQ - Key demand at $20000-20075 with Supply above at $20400s
Bullish Sellers trapped above $20400 looking to play a break and retest from $20430 long targeting $20500 then a breakout into $20600s
Bearish Buyers trapped below $20400 looking to play short from $20375 targeting a breakdown into $20100s then from last Friday
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QQQ Key Demand at $487-488 with Supply above at $496-498
Bullish Sellers trapped above $494 looking to play a break and retest from $495 targeting $497 then a breakout into high $498s
Bearish Buyers trapped below $494 looking to play a break and retest short from $493 targeting $491 then $490s
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TSLA - Key Demand at $261 then at $264 with Supply above at $278 targeting $281 then a breakout into $284-285
Bullish - Sellers trapped above $278 after a break and retest from $279 looking to play LONG targeting $281 then a breakout into $283
Bearish - Buyers trapped below $276 after a break and retest from $275 below looking to target $274 then a breakdown into $271s
Have a great day!!
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