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Good Wednesday morning!!
Well there it was....they're back and the attack was swift and severe!!!!
As we said yesterday....
"You might not see them but they're there! Stalking and waiting in the woods to pounce. Let this be your warning."
The bears had to be patient as there was some early buying at the start of the trading session, especially in the NASDAQ, but once the selling pressure intensified in the afternoon, the buyers were cooked!
Now that being said, this two day down move still needs more confirmation so we all need to stay frosty...meaning stay alert for big swings in either direction!
And this morning is a clear example of that as we are having a repeat from last Friday. Overnight inventory was net short and bearish Friday morning, however when the NFP numbers came out, futures ripped higher. And today the same thing happened! Futures were in a tight consolidation, however, we just had the CPI (Consumer Price Index) results released and the futures ripped higher again! Almost an exact move just like Friday! Whoever was short in the morning sessions on both Friday and today, they got run over because of economic data reports! This is once again bringing buyers back in the market!
In the target levels and profile pic, please notice the NFP and CPI structure.....identical with the same rip higher. They bought the market on both events so now let's see if the buyers can take back the two day down move. We are already moving higher and are in the upper target ranges already so if the bulls move over 6080 then 6086, there could be a larger short squeeze higher!!!
The key line in the sand today is the POC @ 6063.50 and we are already above that level. If futures take out the POC to the downside back below 606350, then look for 6057 then 6053 then lower targets. Futures are trading @ 6072 at the time of this writing.
VPOC Update: No new VPOC's were added yesterday but now we have some downside VPOC's in the crosshairs.....and 6015 is the next closest below. We still have 1 above and 29 below current price.
TARGETS AND KEY LEVELS TO WATCH:
/ES upside target is: 6070 - 6080
Key Levels: 6063.50 POC
downside target is: 6020 - 6010
/NQ upside target is: 21,520 - 21,550
Key Level: 21,474 POC & 1/2 Back
downside target is : 21,275 - 21,235
/RTY upside target is: 2410 - 2415
downside target is: 2375 - 2370
Economic Data: *RED STAR EVENT
MBA Mortgage Applications @ 7:00 AM ET
*CPI @ 8:30 AM ET
EIA Petroleum Status Report @ 10:30 AM ET
4-Month Bill Auction @ 11:30 AM ET
10-Yr Note Auction @ 1:00 PM ET
Treasury Statement @ 2:00 PM ET
More Color....... By Analyst Rich Rickus
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/ES - KEY DEMAND $6035-40 Supply at with Supply at $6075-6085
Bearish
Buyers trapped below $6075 after a pullback below $6070 looking to play SHORT targeting $6055 then $6020-15
Bullish
Sellers trapped above $60675 after a break and retest above $6080-85 playing LONG targeting $6100 then new HOD at $6115
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SPY - Supply flipped to Demand at $602-604 with Supply $606 then $608
Bullish
Sellers trapped above $604 after a break and retest above $604 looking to play LONG targeting high $605 then low $606
Bearish
Buyers trapped below $604 after a retest from $603 targeting $602 then breakdown into $601
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/NQ - Key Demand at $21360-85 with Supply at $21500-21480
Bullish
Sellers trapped above $21500 looking to play long after a pullback holds above $21550 targeting $21600
Bearish
Buyers trapped below $21490 looking to play long after a pullback holds below $21480 targeting $21440 then $21400
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QQQ - Key Demand at $519-520 with Supply that was previous Demand at $525-524
Bullish
Sellers trapped above $520 looking to play long from a break and retest at $521 targeting high $523s then a breakout into $524
Bearish
Buyers trapped below $520 after a break and retest below $519 looking to play short targeting $517 then mid high $515s
Also watching
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TSLA Supply flipped to Demand at $397 then at $388-390 with Supply at $409
Bearish
Buyers trapped below $397 after a break and retest from $396 looking to play SHORT TARGETING $ $394 then $392
Bullish
Sellers trapped above $397 after a break and retest from $398 looking to play long targeting $401 then $404
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NVDA Demand flipped back to Supply at $138-137 with Demand below at $135-134
Bearish
Buyers trapped below $138 after a break and retest from $137 looking to play SHORT TARGETING $ $135 then high $133s
Bullish
Sellers trapped above $138 after a break and retest from $139 looking to play long targeting $141 then $143
Have a great day!
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