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Good morning!
Markets hit new record highs...again....HOWEVER...... something has changed!!! For the first time in what seems like forever (actually several months) the pullback WAS NOT bought back to new highs of the day!!!! I find this VERY interesting and important to watch!
**Please note I am not saying with 100% certainty that we now have a short term high in the markets, but with everything we have seen and the way the market sold off and closed much lower, if it looks like a duck and quacks like a duck......well then Daffy is in the house!
Those with long positions in your portfolio pay close attention!!!! DO NOT GIVE TOO MUCH OF YOUR PROFITS BACK! I think people that chased stocks higher today (the Johnny Come Lately's) could be in for a rude awakening! Case in point META. Look at the way that stock was bought up early in the day but rolled right back over!
Also worth mentioning, Jeff Bezos, Executive Chairman and former CEO of Amazon, just sold $2 BILLION dollars worth of stock!!!! Hello?!?! If he thinks it's time to sell then maybe you should at least consider it! Now one quick thing...they say the "sale" was pursuant to a 10b5-1 trading plan but don't you all find it funny that he sold "EXACTLY" at the 52 week high of his stock!!!!! Folks this is a rigged game period!! As I have said before it is NOT a level playing field!
Anyway, that being said...good for Jeffy! He can go buy another yacht or two. For the rest of us, we need to protect profits and look for the markets to pivot. One day does not make a trend, nor do a few hours of selling, but let's see what today brings as we have a very important number coming out at 8:30 AM EST....CPI (Consumer Price Index)
The profile below tells us exactly where the new lines in the sand are as of this writing. The swing high is labeled and also new downside targets. Our upside targets were nailed yesterday and finally sellers came in to the fray!
Futures are lower this morning and inventory is 100% net short with a true gap below prior days range. Most bearish scenario is a hold below prior day however there may be a fade higher and first target is yesterday's low.
No new VPOC's yesterday and one of our downside targets coincides with a 5012.75 VPOC! We still sit with 18 untested points of control below.
TARGETS AND KEY LEVELS TO WATCH:
/ES upside target is: 5050 - 5060
downside target is: 5030 - 5020 (the those listed above)
/NQ upside target is: 18.075 - 18.100
downside target is: 17.850 - 17.830 (then 17,775)
/RTY upside target is: 2060 - 2065
downside target is: 2055 - 2050
Economic Data Today: Very Light Today BUT Red Star Event
**CPI @ 8:30 AM EST
More Color.......
/ES - Consolidating below Demand at $5050-5040 / Supply at $5066-5060
- Key Demand below that at $5015-5,000
- Failure to break and hold above $5048 I will look to play short
- Sell off at the open into Demand playing long off a break and retest or if price can find support around $5025 level i would like to play long off that targeting $5040
SPY - Supply at $503-500 w/ Demand at $497-498 then $489-91
- First I want to see how the price reacts and yesterday lows and pre market low $500. Break and retest short if price fails to hold above / long if it finds support.
- I would like to see selling at the open playing long off a break / retest from $498
- I would only look to scalp short if price breaks below $497 or retest below $500
with with failing to make a new HOD targeting $498.80
SPX - Supply flipped to Demand at $5030 HOD - 5020 w/ Demand at $5000-10
- I sellers can flip Demand back into Supply with price holding below $5030 I will
look to play short off a break and pullback target $5010 first then $5000
- Below $4985 leaves more room to the downside with demand at $4968
/NQ - Consolidating inside key Demand at $17870 - 17900
- Key Demand below at $17770- 17800 : I would only look to play short if price
fails to reclaim $18000 or if it breaks below $17769
- I would like to play long after selles become trapped at the open from $17800
QQQ - Consolidating inside Demand at $432-434 with Supply above at $437-439
- I would like to play long off a break and retest above $430 targeting $433
- Break and hold below $433 after a pullback and I would look to play short
Also Watching …
AMZN - Key Demand at 168-166 with Supply at $173-175
- Sell off at the open with price holding above $170 to play long
- Break and retest below Supply $172 looking to play short
AMD - Key Demand zone at $166-168 with Supply at $170-172
- I would like to play long off a break and retest from $168 targeting $172
Have a great day!
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