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Good morning and TGIF!
Markets sit at new record highs and there still isn't a care in the world with investors. AI (Artificial Intelligence) seems to be the ONLY thing that matters and those companies in the game are benefiting greatly (and pulling the entire market up with them)!!
Today is plain and simple....please look at the profile picture below. The levels of importance from yesterday held and confirmed bulls were still very much in control. The fact that we are now gapping above the 2 day high at 5020 tells us that this is the new support level.
It also tells us that if we do fade (meaning go lower today) then 5020 is our first downside target! After that, you can see very clearly that the overnight low @ 5012 is now ANOTHER very key level as that is also where the point of control and 1/2 back from yesterday sit. That would be next target if prices move lower.
Then of course the 5004-5002 would be the next in line, however that is not the high probability trade for today. Not saying it can't happen but according to stats as of this writing there is only an 8% chance of hitting 5000 today.
Futures are ripping higher this morning on a recent headline that CPI was revised down from .3 to .2% meaning inflation is easing. Overnight inventory is mixed to net long however with this gap, we are opening outside of prior days range to the upside! Odds are increasing for a fade lower. Use a look above and fail at overnight high or a one minute low for a short. As always, monitor for continuation and use targets listed above.
No new VPOC's yesterday with 17 untested points of control still below.
TARGETS AND KEY LEVELS TO WATCH:
/ES upside target is: 5035-5040
downside target is: 5020-5010
/NQ upside target is: 17,960-17,980
downside target is: 17,925-17,900
/RTY upside target is: 1992-1995
downside target is: 1982-1979
Economic Data Today: Very Light Today
Nothing in the morning.
Baker Hughes Rig Count @ 1:00 PM EST
**FED member Logan speaks today.
More Color.......
/ES - Demand at $5000-5005 and at then at $4985-4990
- Consolidating above Supply at $5020-5010
- I want to play long off failed sell offs to the downside above $4980
- Below $4980 leaves room to the downside to $4970
SPY - Key Demand at $495-496 then at $493 -492 with Supply at $499-497
- The first set up I would like to see is a break and retest long at $497
- If sellers become trapped above $495 I will look to play long targeting $497
- If price beaks below $495 and holds I will look to play short targeting $492
SPX - Key Demand at $4970-4980 then at $4940-4930
- The only way I want to play short is if price breaks and holds below $4970
/NQ - Same as yesterday with Demand at $17770-17800 with Supply at $17900-17875
- I would only look to play long after sellers become trapped above $17775
- Downside not until price can break and hold below $17770
QQQ - Key Demand at $430-431 then at $425-426 with Supply at $433-432
- Break and retest long above $430 targeting $432 first then a new HOD
- Sell of below $430 with price failing to break and hold above I will look short
Also Watching …
AMD - Same as yesterday - Sellers at the open trapped inside or above Demand
- Key Demand at $169-166 looking to play long off a break / retest targeting $172
- Demand flipped to Supply at $173 -175 ( failed rallies below I will look to short)
META - Consolidating inside Supply at $470-473 with Demand at $453-455
TSLA - Gap Up into Key Supply overnight at $190-188
- Key Demand below that is at $180-182
AMZN - Up trend from Demand at $$168-167 with Supply above at $174-172
- A failed rally above $173 I will look to play short targeting $171.50
- Sellers at the open trapped above $168 I will look to play long
DIS - Earning made price jump with some consolidation / Demand at $104-105
- Break and retest from $110 playing long targeting $112
ARM - Key Demand at $ 92-95 with Supply at $120-126
- Sellers trapped at the open playing long above $110
- Sellers trapped playing long off a break and retest from $96
SHOP - Key Demand at $84-85 with Supply at $91-88
- Looking to play long after a sell off holding above $84
Have a fantastic day and a great Super Bowl Weekend.
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