|
Good Tuesday morning!
Markets posted a strong bounce yesterday erasing much of Friday's losses, however, buyers and sellers spent a majority of the day in the balance area we pointed out yesterday before the opening bell. That did not surprise us at all given the way the market acted in the overnight session and also to confirm our thoughts, how the markets did not even move down to the POC during the regular trading hours session. That was a tell that sellers, at least for the time being, have stepped back and taken a break. As we mentioned yesterday....
"I would say that today could be difficult to navigate in now choppy waters. As you can see in the profile pic and key target levels, we are in a large balance area between 5471 - 5420. There has been a very large bounce off of the overnight lows (5394) where the price actually took out Friday's lows, however, buyers have taken price well off those lows and are now trading at 5456 at the time of this writing!"
Well the fact that yesterday was not a follow through down day after Friday's big loss, and we added a new VPOC below yesterday and also futures are higher this morning testing yesterdays highs, all adds to our conviction of short term strength. Now please look....anything can happen at anytime but if we can take out prior days high and stay there, then I will be looking for upside targets!
At the time of this writing, we are now gapping outside of yesterdays range so this is a sign of buyers stepping in and shorts having to cover. Please use 5493 as a line in the sand in the /ES and 18,730 in the /NQ's. The longer we remain above these levels, the higher the probability we stay there and move higher.
IF these levels are lost then look for a downside retracement to the key levels listed and shown in the profile pic below. Try to keep it that simple!! Overnight inventory is mixed so there is not a high probability that we need to fade lower right away to balance out the inventory! Have a great day and stay frosty!
PS Nothing of consequence on the economic calendar today so participants will look to CPI and PPI on Wednesday and Thursday respectively. Don't forget FED meeting next week!
VPOC Update: A new VPOC was added yesterday below @ 5420.50 and we are now back to still having 2 above and again 21 untested points of control below current prices.
TARGETS AND KEY LEVELS TO WATCH:
/ES upside target is: 5525 - 5535 *then 5565
Key Levels: 5479 POC and 5468 1/2 Back & Overnight low
downside target is: 5435 - 5425
/NQ upside target is: 18,860 - 18,890
Key Level: 18,730 Prior day high & 18,658 POC
downside target is : 18,540 - 18,510
/RTY upside target is: 2125 - 2130
downside target is: 2075 - 2071
Economic Data: Nothing of importance today!
More Color....... By Analyst Rich Rickus
/ES - Demand $5442-30 with then at $5470-75 ( previous Supply )
Bearish
Buyers trapped below $5440 and holding below after a pullback below $5430 looking to play SHORT targeting $5408 the new LOD $5392
Bullish
Sellers trapped above $5440 after a bounce playing long targeting $5468 then $5475
SPY - Demand at $545-546 w / Supply at $549
Bullish
Sellers trapped above $545 looking to play LONG after a break and retest from $546 targeting $548 then $550
Bearish
Buyers trapped below $545 after a retest from $544 targeting $542 then $540.88
/NQ - Key Demand at $18640-19 with Supply at $18745-20
Bullish
Sellers trapped above $18619 looking to play long targeting $18660 then $19700
Bearish
Buyers trapped below $18625 and holding , looking to play short targeting $18580 then new LOD
QQQ - Key Demand at $448-450 w/ Supply at $456
Bullish
Sellers trapped above $448 looking to play long from a break and retest at $449 targeting $551
Bearish
Buyers trapped below $448 after a break and retest below $447 looking to play short targeting $445
Have a great day!
| 
