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Good Thursday morning!
Bulls are still in control as evidenced by new all time highs made once again in the S&P and NDX yesterday, however, we are right back into the mosh pit. The intraday volatility continues to be epic but that of course not only brings danger, but also opportunity. I have said time and time again don't fall in love with your trades too soon, especially on the intraday time frame! We continue to see massive short squeezes and liquidation breaks throughout the day so trade carefully and be able to switch sides in an instant.
In the profile pic and key targets levels below, price has fallen well off of yesterday's highs, below the POC and even below 1/2 back. Futures were recently testing the value area low (bottom of yellow shaded area) and overnight low around 6141. My anticipated target is this area anyway between 6140 and 6130, so let's see if it holds. Now if the sellers take price below 6141 look for 6130 as your next downside target and then if that gets taken out, look for 6115 as the next potential stop. If buyers hold lower targets and start moving price back above 1/2 back then look for the POC and upper targets.
In a nutshell, the market is starting to feel toppy up here and we could be in for another liquidation break at anytime, but as we have seen, liquidation breaks continue to be bought right back up time and time again. Also, please remember liquidation breaks take sellers out of the market! When sellers commence their operations and sell stocks or futures, price moves lower, but if buyers come right back in and take price back up, those sellers are now on the sidelines because they were hoping for lower prices, however their efforts have been rejected.
All in all, it's still a tricky time up here and it's still very bullish but we all must be on guard and be on the lookout for any kind of strong liquidation breaks lower. The only thing that would change the tone of this market is if we start taking out and staying below 6130 then 6115 then we might have a short term top in place. Futures are trading @ 6148 (right @ 1/2 back) at the time of this writing.
VPOC Update: No new VPOC's added or taken out yesterday. We have 6171 above and 30 below with 6099 being the closest.
TARGETS AND KEY LEVELS TO WATCH:
/ES upside target is: 6175- 6185
Key Levels: 6135 - 6148 1/2 Back
downside target is: 6140 - 6130
/NQ upside target is: 22,315 - 22,335
Key Level: 22,218 POC
downside target is : 22,160 - 22,140
/RTY upside target is: 2300 - 2305
downside target is: 2270 - 2260
Economic Data:
Jobless Claims @ 8:30 AM EST
Philly Fed Manufacturing @ 8:30 AM EST
Leading Indicators @ 10:00 AM EST
Natural Gas Inventories @ 10:30 AM EST
Crude Inventories @ 11:00 AM EST
More Color....... By Analyst Rich Rickus
Away this week , back Monday
Have a great day!
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