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Good morning!
New all time highs again yesterday after the CPI came out flat (0.0%) vs the consensus expectations of +.1% and as a result futures absolutely exploded on the release. There was some intraday volatility when the FED came out and left rates unchanged as expected, so all in all the bulls are still firmly in control of this market.
Futures popped a bit after jobless claims and the PPI were just released @ 8:30 AM EST, however, things are settling back down. We are almost squarely inside prior day's range so today will be about whether price stays inside or breaks outside of Wednesday's range, either higher or lower.
NASDAQ futures (/NQ's) are quite a bit stronger as futures are gapping outside of prior days range once again. There was no fade yesterday at all but we can be looking for the same thing today. Overnight inventory is 100% net long with a true gap so there could be a fade lower. I will use a look above and fail at the overnight high or a 1 minute low for a short. Yesterday neither of those things happened at the open!!!
As you can see in the profile pic below, the key levels are marked off so use them as "lines in the sand"....bullish above and "maybe" bearish below. Downside target in the /ES could be around 5400 but the POC, 1/2 back and the overnight low would all have to be taken out. The gap down to Tuesday's high at 5386.25 will fill eventually!!!
SBUX: No change. We are keeping stops and targets in place for now.
TSLA: We bought TSLA yesterday @ $179 on a trend line break from the December 28 highs.
VPOC Update: A new VPOC was added yesterday @ 5354.25 since the huge gap held and never retraced back down into prior day's range. We now have 23 VPOC's below current price levels.
TARGETS AND KEY LEVELS TO WATCH:
/ES upside target is: 5450 - 5455
Key Levels: 5436 Yesterday's 1/2 back
downside target is: 5405 - 5390
/NQ upside target is: 19,625 - 19,650
Key Level: 19,589 Yesterday's high
downside target is : 19,425 - 19,395
RTY upside target is: 2078 - 2082
downside target is: 2043 - 2038
Economic Data:
PPI @ 8:30 AM EST
Jobless Claims @ 8:30 AM EST
Natural Gas Inventories @ 10:30 AM EST
More Color.......
/ES - Key demand at $5415 -5425
1. A breakdown below $5414 and holding after a pullback I will look to play short targeting $5395
2. Sellers trapped above $5416 after a break and retest targeting $5430 then
$5440
SPY - Key Demand $540 with Supply above at HOD $544
1. Sellers trapped above $540 looking to play long off a break and retest
target $542 then $544
2. Buyers trapped below $539 after a break and retest looking to play short
targeting $537 then new LOD
SPX Key Demand at $5409-5420 with Supply above at $5447
1. A breakdown below $5405 and holding below $5409 after retest I will look to play short targeting $5390
2. A bounce above $5415 I will look to play long targeting $5430 then $5440
/NQ Supply flipped to Demand $19525-19545
1. Sellers trapped above $19525 looking to play long targeting $19575
2. A breakdown below $19520 and hold after a pullback I will look to play
short targeting $19490
QQQ Key Demand at $471-472 with it consolidating inside Supply at $478-476
1. Sellers trapped above $472 looking to play long off a break and retest
targeting $474 then $476
2. Buyers trapped below $476 playing short after a break and retest from
$475 , targeting $473-472
AAPL Key Demand at $205-206 then at $212 with Supply at $220
1. Watching for a bounce at the open above $212 looking to play long
targeting $214 then $216.55
2. A breakdown below $212 and holding after a pullback leaves room for the downside to target previous demand at $206
AMD Key Demand $158-159 with Supply at $162
1. Sellers trapped above $159 after a break and retest holds above targeting
$161 then $162
2. Buyers trapped below $162 after HOD fails new , with follow through
looking to play short targeting $160 then $159
As ALWAYS, have your stops & targets in place and have a great day!!!
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