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Good Thursday morning!
Don't you just hate missing out on a trade?!?! Like in the picture above, you see your buddies have nailed it again and you missed out on a sweet set up?!? Well you are not alone but don't get too discouraged. IF you have been paying attention to the key levels and targets we post everyday, then you will be the one fist pumping your buddy and you won't be missing out on as many trades anymore! That should be good news to you!
Trading is not easy but paying attention to market structure and identifying key price zones and target levels is something that is absolutely imperative. That is exactly why MEC puts out Morning Color everyday! We identify the support and resistance zones and levels and give you set ups to look for, either long or shorts. Then of course it is up to you to pull the trigger with your trades. Sorry but we can't do everything....yet!
In the profile pic and key levels below, you can see where the ON low (Overnight low) is very close to the VAH (Value Area High) and yesterday's high at 6089.25. This is your first key line in the sand! If price stays above there then look for upper targets to be hit around 6110-6120 then maybe even 6130 and VPOC @ 6148.50.
If price breaks below 6089.25, then the first downside target which is the POC (Point of Control) at 6075.75, then top a spike then half back then lower targets. Like I said yesterday, stay fluid and just look for things to play out in stages.
We do have some economic data today but nothing that should be market moving so there shouldn't be too much volatility caused by these releases. Today is going to be about "do traders and investors have the confidence to keep putting money to work in the markets?" and as long as we stay above prior high and the overnight low, then the answer is a resounding yes. Don't try to overthink or complicate things. Futures are trading @ 6098 at the time of this writing.
VPOC Update: No new VPOC's yesterday so now we have 6148.50 and 6171 above and 29 with 5950 being the closest to current price.
TARGETS AND KEY LEVELS TO WATCH:
/ES upside target is: 6110 - 6120
Key Levels: 6089.25 Prior high VAH and ON low
downside target is: 6060-6050
/NQ upside target is: 21,980 - 22,020
Key Level: 21,710 POC & ON low
downside target is : 21,620 - 21,590
/RTY upside target is: 2340 - 2350
downside target is: 2300 - 2310
Economic Data: Busy Day .....
3-Month Bill Settlement
6-Month Bill Settlement
Challenger Job-Cut Report @ 7:30 AM ET
Jobless Claims @ 8:30 AM ET
Productivity and Costs @ 8:30 AM ET
EIA Natural Gas Report @ 10:30 AM ET
Treasury Buyback Announcement @ 11:00 AM ET
3-Month Bill Announcement @ 11:00 AM ET
6-Month Bill Announcement @ 11:00 AM ET
4-Week Bill Auction @ 11:30 AM ET
8-Week Bill Auction @ 11:30 AM ET
Treasury Buyback Results @ 2:00 PM ET
Fed Balance Sheet @ 4:30 PM ET
Lorie Logan Speaks @ 5:10 PM ET
Christopher Waller Speaks @ 7:30 PM ET
More Color....... By Analyst Rich Rickus
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ES Demand at $6018-6024 with Supply above at $6080
Bearish
Buyers trapped below $6020 after a pullback below $6010 looking to play SHORT targeting $5985 then $5965
Bullish
Sellers trapped above $6080 after a break and retest above $6090 playing LONG targeting $6123 then $6145
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SPY - Demand at $596-597 with Supply above at $602
Bullish
Sellers trapped above $ 602 after a break and retest above $603 targeting $605 then $606
Bearish
Buyers trapped below $597 after a retest from $596 targeting $594 then breakdown into $593
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/NQ - Key Demand at $21240with Supply above at $21700
Bullish
Sellers trapped above $21700 looking to play long after a pullback holds above $21720 targeting $21800 then a breakout into $21900 target last Friday HOD
Bearish
Buyers trapped below $21200 looking to play SHORT after a pullback holds below $21150 looking to play short targeting $21100 then a breakdown into $20900
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QQQ - Supply flipped to Demand at $517 with new Supply above at $521
Bullish
Sellers trapped above $517looking to play long from a break and retest at $518 targeting high $521 then a breakout into $523
Bearish
Buyers trapped below $517 after a break and retest below $516 looking to play short targeting $515 then mid high $513
Have a great day!
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