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Good Tuesday morning!
It looks like the sellers are finally stepping up their operations as all major indices closed in the red yesterday, and there is actually follow through as futures are down sharply this morning. We have been warning of this for some time now and it looks like the overbought market needs a breather!
In the profile pic below, I have highlighted the key levels for today. Basically there is a very important range around 5275 - 5270 and if that gets taken out to the downside, look for 5263, then 5245 - 5240 would be next downside targets! There is a VPOC at 5239.75!
As of this writing, futures are at or close to overnight lows and we are outside Monday's range. Overnight inventory almost 100% net short so there might be some short covering at the open to balance out the inventory. The hardest thing to do is to try to short a large gap down as there is usually a counter move first. I am not guaranteeing this will happen but I have seen it many times. Wait for a bounce first then look to short! If it does go straight down, use target levels above!
A huge key today will be if we stay outside of yesterday's range. If we don't get back above 5282 then this is a great sign for the bears!
VPOC Update: No new VPOC's yesterday. We still 23 untested points of control below current price but this looks like it will most likely change today with this big move lower.
TARGETS AND KEY LEVELS TO WATCH:
/ES upside target is: 5310 - 5315
Key Levels: 5300 1/2 back & Value Area High
downside target is: 5275 - 5270 then 5263 then 5245
/NQ upside target is: 18,525 - 18,555
Key Level: 18,475 - 18,480 POC
downside target is : 18,405 - 18,385
/RTY upside target is: 2150 - 2152
downside target is: 2108 - 2104
Economic Data:
Factory Orders @ 10:00 AM EST
JOLTS @ 10:00 AM EST
More Color.......
/ES - Key Demand at $5264 - 5275 with Demand flipped to Supply yesterday at $5300
- If price opens up below $5285 I would like to play break and retest short from yesterday's lows targeting $5260 first then $5250.
- Buyers at the open find support above $5295 I will look to play long targeting $5315 then 5325 ( Supply)
SPY - Selling pre market into the open - If price opens up and holds below $521.50 I would like to play short break and retest from pre market lows targeting $520 the $519
- Key Demand at $518.50 with Supply above at $522.50 : I would only like to play long if there is a huge sell off followed by a bounce and pullback from demand or if Bulls can break through $522.50 at the open and flips Supply to Demand
SPX - Key Demand at $5230- 5240 with Supply above at $5265 - 5258
- Looking to see if buyers are trapped at the open below $5250 to play short targeting $5237 then $5229. If buyers are present at the open I would only like to play long after selling fails at key demand playing break and retest from $5230
/NQ - Selling off inside key demand between $18425-18400
- Watching to see if price open below $18390 to play short after a break then retest below $18400 targeting $18378 then $18353
- I would only like to play long if buyers can find support back above $18500
QQQ - Selling inside Demand at $442 - 443 with Supply above at $445
- Looking to play a break and retest short at $445 after buyers fail to break out above or if there is a sell off at the open below $442 ( Demand flips to Supply)
- I would only like to play long if price can find support above $445.50
MU New HOD broke out yesterday with Demand at $ 123 then at $118 with supply at $126-127. Watching $123 to play a break and retest long.
- If the price breaks below $123 I will look to top play short targeting $119
- Buyers fail at key supply and HOD looking to play short off a break and retests from $126 targeting $124
AAPL - Consolidating inside key demand at $167 - 169 with Supply at 171
- Watching to see how prices react to the $168 key demand. 4 hr Down trendline
As ALWAYS, have your stops in place!!!
Have a great day and stay safe!
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