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Good morning,
Yesterday was what we call the quintessential "balance day" as the market was awaiting new information so it didn't do very much. The range was very small and volume was below average. There was no economic data or other market moving news but that is all going to change very soon. Today we still have nothing on the economic calendar but tomorrow through Friday things will get very interesting!!!
Tomorrow we have CPI (Consumer Price Index), Crude Inventories and FOMC Minutes from the last meeting and all of these are potential market movers. Thursday we get PPI (Producer Price Index) and Jobless Claims, and then Friday we kick off Q1 earnings season with JPM, WFC, BLK and others so all eyes will be on earnings results!
As of this writing, futures are higher with overnight inventory mixed and we are inside of yesterday's range. As was the case Monday, there is no real edge this morning although the bulls have recently taken futures to new pre market highs! Feels like the path of least resistance is higher!
The key levels are posted in the profile pic below so keep a close eye on these for further signs of strength or weakness. If buyers keep it above 5257-5255, then look for upper targets, especially if buyers start repairing the back to back poor highs! (Poor highs, or lows, happen when buyers or sellers just run out of energy and the market retraces off of those highs (or lows). When that happens and the market returns to those areas there are high probabilities that those levels get taken out!) ONLY if we lose overnight low and yesterday's low would there be a potential change back to the sellers!
VPOC Update: No Change. We still have 1 above @ 5297.75 and 19 still below.
TARGETS AND KEY LEVELS TO WATCH:
/ES upside target is: 5290 - 5297 (VPOC from Thursday 5297.75)
Key Levels: 5245 Overnight Low & Prior Day Low
downside target is: 5210 - 5200
/NQ upside target is: 18,460 - 18,475
Key Level: 18,250 - 18,240 Overnight Low & Prior Day Low
downside target is : 18,140 - 18,125
/RTY upside target is: 21101- 2115
downside target is: 2060 - 2058
Economic Data: Nothing on tap!
More Color.......
/ES - Balanced range with Demand at $5225 - 5250 with Supply above at $5275- 5260
- Buyers trapped at the open below $5275 I would like to play short target $5230
- Sellers trapped above $5225 with a break and retest long targeting $5264 /$5275
- Key Demand at $5190 -5200 - sellers trapped inside at open looking to play long a break down below leaves us more more room to the downside
SPY - Key Demand at $515-517 with Supply above at $520 -519
- Buyers fail to break out and hold above $520 I will will look to play short targeting $519. 55 first then $518 followed by LOD
- Sellers fail to break below $517 after a sell off finds support. I will look to play long. A breakdown below leaves Demand with LOD at $512 - 514, I would only like to play a break and retest short below $517 if price doesn’t reclaim above.
SPX - Key Demand at $5160 , 5185 - 5200 with Supply at $5250-70
- Buyers fail to break out above $5220 I will view this as bearish and look short
- I would only like to play long after price finds support above $5180 target $5200
/NQ - Key Demand at $$18000 -50 then at $18200-30 with Supply at 18410- 18385
- Buyers fail to break above $18400 I will view this as a bearish sign looking to play short targeting $18375 then $18350
QQQ - Key Demand at $432 -434 with Supply above at $450-447 then below at $443
Same Balanced Range as Yesterday
- Buyers trappers at the open below $443 looking to play a break and retest short from $442 targeting $440 then $439
- Sellers tapped above $435 looking to play long targeting $436 then 437
AMD - Key Demand at $165 with Supply at $170 - 172 and at $179- 180
- Buyers trapped at the open below $174 looking to play short targeting $170
MU - Gap UP above Key Demand at $121-122 then at $118 with Supply above at $130
- Waiting for sellers to become trapped above 123 looking to play a break and retest long target $125 first then $130
TSM - Gap up above previous HOD $147 inside Supply at $145
- I would like to play a GAP and Go where price retest $145 then breaks out
targeting $147 and new HOD
As ALWAYS, have your stops in place!!!
Have an awesome day!
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