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Good Wednesday morning,
Yesterday was what we call a "balance day" or "digestion day" meaning the market participants took a breather as far as any aggressive buying or selling after Monday's very large move lower! This is a sign of a pause where people are waiting for more information and that information is basically one thing right now.....how earnings continue to flow in and tell us the bigger picture!
As I mentioned yesterday....
"Today will all be about how far the market retraces yesterdays big down move. Please pay attention to the profile pic below as it shows a large area of single prints! This happens when trading is very emotional and not a lot of time or volume happens in this space. It actually separates the prior day into two different distributions. Anything that stays below 5153 is more bearish. Any price action back above that level opens the door to a potential short squeeze higher!"
Well yesterday's high was only 5123.25 as the market was in a relatively tight and very choppy range! And by the way, that high level was only achieved because of a quick spike up and then right back down when FED Chair Powell was speaking, so we got a decent amount of "color" from Tuesdays trade...and that is: bears are still in control for now!!
In the profile pic below, if we can stay above the 5100-5090 range then the bulls are digging in to try to take it back higher. If the upper zone is breached (prior days high) then the doors open for a short squeeze higher as well looking then for upper targets. If the sellers step up again, then watch for a break of 5090 which would lead to more selling and downside targets would be the 5050-5040 area!
VPOC Update: We took out a VPOC below at 5089 so now we have 2 above @ 5297.75 and 5151.50 and we now have 16 still below with closest one @ 5033.75
TARGETS AND KEY LEVELS TO WATCH:
/ES upside target is: 5130 - 5140
Key Level: 5100 - 5105 Point of Control and 1/2 Back
downside target is: 5050 - 5040
/NQ upside target is: 18,050 - 18,075
Key Level: 17,900 - 17,880 Point of Control and 1/2 Back
downside target is : 17,725 - 17,700
/RTY upside target is: 2000- 2005
downside target is: 1960 - 1955
Economic Data: Light!
Crude Inventories @ 10:30 AM EST
Beige Book @ 2:00 PM EST
More Color.......
/ES - Key demand at $5060-5080 then Supply at $5125 - 5115 and at $5200
1. Buyers trapped at the open below $5080 looking to play a break and retest short targeting $5100 then $5090
2. I would only like to play long if buyers can break and hold above $5125 targeting $5180 followed by $5200
SPY - Balance range with Demand at $502-503 then supply above at $506-505 , $510
1. Buyers trapped at the open below $507 looking to play short targeting $505
2. A breakout above $$507 I would like to play a break and retest long from $506
SPX - Inside Key Demand at $5035- 5055 with Supply above $5160-5180
1. Looking for buyers to be trapped at the open below $5125 playing short
targeting Demand. A break out above $5125 I will play long target $5160
/NQ - Key Demand at $17800 - 17855 with Supply above at $18100 -130
1. Buyers trapped below $18055 looking to play short targeting $17950
2. I would only view this bullish and play long if buyers can reclaim above
$18000 targeting $18100
QQQ - Key Demand at 420 - 422 with Supply from yesterday at $432 and $428
1. Buyers trapped below last week support at $434 under $435 looking to play short
2. I would only like to play long if buyers can reclaim above $438 and find support
AMD Key demand at $159-160 with Supply above at $164 -165
1. A breakout and retest above $165 is the only set up I will look long
2. Buyers trapped below $164 looking to play short targeting $162
AAPL Key Demand at $167- 168 with Supply above at $173 -174
1. Buyers trapped at the open below $174 looking to play short targeting
$170
2. Sellers trapped above $168 looking to play a break & retest long target
$171
As ALWAYS, have your stops in place!!!
Have a great day!
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