|
Good morning,
Markets gapped higher Monday and never looked back. When a market gaps up out of range with overnight inventory 100% net long and barely fades at all, that is a very bullish sign! As a testament to that statement, look at what our upside targets were and where the markets closed! Very impressive indeed.
The SPX held up very well and any price action that remains above 5150 is definitely an edge to the bulls and 5200 is the next target in sight! SPX closed at 5180 yesterday! If/when the 5200 target is hit, the markets will have bounce about 250 points from the April 19th lows. We are obviously not exactly there yet but that is quite impressive in just about 12 trading days.
Futures are flat to slightly higher this morning so today will all be about holding above the key levels in the profile pic below. Try to keep it simple and follow the road map! If we get and stay above overnight low and yesterday's highs, then look for upper targets. If we start taking out overnight lows, then look for 1/2 back then POC then lower targets. The market will tell you what is going on and who is winning the battle. Remember either buyers overwhelm sellers or sellers overwhelm buyers! That's it!
(and oh yeah...I almost forgot...sometimes they are at a stalemate and the market just chops around and goes sideways.....this is called balance. Never forget door #3!)
VPOC Update: With the gap and hold yesterday we have added yet another VPOC below @ 5154.25. We still have 2 above and now 18 below.
TARGETS AND KEY LEVELS TO WATCH:
/ES upside target is: 5225 - 5235
Key Levels: 52020 then 5191
downside target is: 5180 - 5170
/NQ upside target is: 18.320 - 18,340
Key Level: 18,151
downside target is : 18,060 - 18,030
/RTY upside target is: 2080- 2085
downside target is: 2060 - 2055
Economic Data: VERY LIGHT TODAY!
Neel Kashkari speaks @ 11:30 AM EST
Consumer Credit @ 3:00 PM EST
More Color.......
/ES - Key demand at $5140 - 5155 with Supply at $5215 -5205
1. A breakout below $5210 I would like to play shot after a break and retest
targeting $5180 first the $5155
2. Sellers trapped above $5140 looking to play long targeting $5190
SPY - Key Demand at $511 -512 with Supply above at $518-517
- Sellers trapped above a $511 looking to play long after morning sell off
targeting $513 first then $515
- Buyers fail to break out above $518 after a breakout and pullback , looking
to play short targeting $516 then $515.20
SPX Key Supply flipped to Demand at $5130-5145 with Supply at $5210-5225
1. A breakdown below $5140 and I will look to play short target $5130 , 5155
2. Sellers trapped above $5142 I will look to play long targeting $5166
/NQ Key Demand $17963 -50 with Supply at $18200 -05 then at $18300
1. Buyers trapped below previous HOD after a break and retest under $18200 looking to play short targeting $18179 then $18150
2. Sellers trapped above $18100 after sell off find support looking to play
long targeting $18205 then $18230
QQQ Key demand at $435 with supply above at $443-444
1. Sellers trapped above $438 after a sell off finds support looking to play
long targeting $440 then $441
2. If price breaks and hold below $438 I would be interest in short targeting
$436 then $434
AMD Key Demand at $151 with Supply at $156
1. Sellers trapped above $152 looking to play long after a retest targeting
$155
2. A failed rally below $157 with a pullback under supply I will look short
As ALWAYS, have your stops in place!!!
Have a great trading day!
| 
