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Good Wednesday morning,
Finally, there was liquidation yesterday, and that definitely got someone's attention! The bears are now fully awake and attentive to the tide finally starting to turn. It's been quite a long time, but sellers are actually showing up. Will it last? That's the $64,000 question. One day does not make a trend, but after today, we will have a better idea of whether yesterday was a one-off or the start of a new trend lower. Let's get into it and we will know exactly what to look for in the near future.
📊 In the profile pic and key levels, futures broke out of the tight balance range from Monday, and there are now quite a few people trapped at higher prices. This in the first key data point to think about. The point it, if price does not get back into Monday's range, then they will start to get nervous and could have to panic sell out of their positions with poor trade location.
When the bell rings today, futures are mixed and price is below some very key levels. The first key level to watch is the POC at 6,433. Any price action that stays below this level will keep the edge with the sellers. Any loss of the prior low at 6,419 means we will then look for the overnight low and lower targets at 6,375 - 6,365 If buyers can take price above the POC, then we will look for half-back at 6,448, then VAH (Value Area High) at 6,456. Any move above that level we will look for our upper targets of 6,460 - 6,470.
Futures are currently trading at 6,426 at the time of this writing.
🧭 VPOC Update: Again, no new VPOC's were added or taken out on Tuesday. We still have none above and five below the current price. Closest one below is 6,367.50.
Current VPOCs:
- 6,367.50
- 6,264.50
- 6,146.00
- 6,091.00
- 6,050.00
TARGETS AND KEY LEVELS TO WATCH:
/ES upside target is: 6,460 - 6,470
Key Levels: 6,433 POC then 6,419 Prior Low
downside target is: 6,.375 - 6,365
/NQ upside target is: 23,555 - 23,585
Key Level: 23,426 Prior Low
downside target is : 23,275 - 23,250
/RTY upside target is: 2,295 - 2,305
downside target is: 2,265 - 2,255
Economic Data : RED STAR EVENTS
Crude Inventories @ 10:30 a.m EST
FOMC Minutes @ 2:00 p.m EST
More Color By : Rich Rickus
1. /ES - Key Demand $6360 Supply above at $6485
Bullish : Sellers trapped above $6360 looking to play a break and retest above $6350 long targeting $6415 then $6430
Bearish Buyers trapped below $6350 looking to play short after a break and retest below $6345 targeting $6315 then a break down into $6300
2. SPY Key demand at $634-635 with Supply above at $640
Bullish Sellers trapped above $640 looking to play a break and retest from $641 long targeting $643 then a breakout into high $645
Bearish Buyers trapped below $635 after a break and retest below $634targeting $632 then a breakdown into $631
3. /NQ Key demand at $23300 with Supply above at $23700
Bullish Sellers trapped above $23700 looking to play a break and retest above $23724 long targeting $23850 then a breakout back into low $24100
Bearish Buyers trapped below $23300 looking to play short from below $2375 targeting $23100
4. QQQ Key Demand at $576-577 with Supply at $582
Bullish Sellers trapped above $577 looking to play a break and retest from $578 targeting $580 then a breakout into high $581
Bearish Buyers trapped below $576 looking to play a break and retest below targeting $575 then $574
Have a great day!
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