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Good Wednesday morning,
Day's like yesterday are tailor-made to take your money if you are not careful! The BS chop was epic, and the problem with a day like yesterday is that there is no way to anticipate these kinds of days in advance, so they are incredibly frustrating and usually traders lose money chasing price. Computers and algo's basically pickpocket other traders all day long, and it is unfortunately a losing battle. Like the pic above says....time to give back any gains!
In the profile pic and key levels below, futures were absolutely balanced within Monday's range and you can see that in the two rectangles below. We had back-to-back POC's, a very squat profile, with a wide midpoint, and this signifies very choppy price action. The good thing about a day like yesterday is that when it breaks out of the two day balance, you can see it quite easily where price is heading, and this morning, buyers are right back at it.
We are making new overnight highs as we speak, and price is right at prior highs and also VAH from Monday. Any sustained time at these levels we should be looking for upper targets. Only a break back down below the POC at 6270 would we then focus on our lower targets!
Futures are currently trading at 6,288 at the time of this writing.
VPOC Update: No new VPOC's added or taken out yesterday. We still have one above at 6,324 and three below: 6,146, 6,019 and 6,050.
TARGETS AND KEY LEVELS TO WATCH:
/ES upside target is: 6,295 - 6,310
Key Levels: 6,270 POC
downside target is: 6,260 - 6,250
/NQ upside target is: 23,025 - 23,050
Key Level: 22,910 POC
downside target is : 22,825 - 22,800
/RTY upside target is: 2,265- 2,275
downside target is: 2,235 - 2,225
Economic Data : Red Star Events
EIA Petroleum Status Report @ 10:30 AM ET
Treasury Buyback Announcement (Preliminary) @ 11:00 AM ET
4-Month Bill Auction @ 11:30 AM ET
10-Yr Note Auction @ 1:00 PM ET
FOMC Minutes @ 2:00pm
More Color By : Rich Rickus
Back at it tomorrow
Have a great day!
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