|
Good Monday morning!
We had some rough seas with extreme volatility the last three days of the prior week and people got whipsawed in a big way. We had FED Chair Powell speak in front of Congress and the Senate Banking Committee, plus important CPI and PPI data. Big up day Wednesday followed buy huge sell off Thursday followed by a large rebound Friday (with a significant liquidation break late Friday afternoon.) This price action is enough to rattle even the most seasoned trader. In these times of high volatility, either sit on the sidelines or reduce your trade size. There are great intraday opportunities but with high reward comes high risk.
Today we are inside of Friday's range so the key levels to watch are listed below. Overnight inventory is 100% net long so there could be some fade lower to balance out that inventory, but buyers are still very present. As long as we stay above the 5675 level (1/2 back) and 5667 - 5665 price levels (Point of Control and Overnight low), then the bulls will remain in control. If those levels are breached, then look for 5658 then 5642, then lower targets which are listed below.
The longer term trend is still firmly higher so until we start building value lower, it is status quo in the markets and sector rotation continues. Please note FED Chair Powell speaks today again @ 12:00 PM EST and we are ramping up with the new earnings season.
VPOC Update: No new VPOC's on Friday so we still have 25 VPOC's below current price levels with the closest being 5624.25.
TARGETS AND KEY LEVELS TO WATCH:
/ES upside target is: 5690 - 5695
Key Level: 5667-5665 Overnight low and POC
downside target is: 5625 - 5620
/NQ upside target is: 20,725 - 20,745
Key Level: 20,512 Overnight low and Value Area Low
downside target is : 20,365 - 20,355
RTY upside target is: 2185 - 2190
downside target is: 2145 - 2140
Economic Data:
Empire State Manufacturing Index @ 8:30 AM EST
FED Chair Powell Speaks @ 12:00 PM EST
More Color.......
Have a great day!
| 
