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Good Monday morning!
First and most importantly: HAPPY VETERAN'S DAY!! Thank you to all of those who have served our great country! We truly appreciate you!
Risk on around the world continues as the markets hit new all time highs on Friday, and this morning, futures are breaking out to more new all time highs as we speak. It was yet another strong hold by the bulls on Friday and we have gapped higher now three days in a row and today could be number 4. This is incredibly bullish and people continue to chase and short operators are getting crushed. That being said, I'm going to keep it short and sweet today and I'm sorry but it is worth repeating......
"The ONLY thing that will change this in the near term is now breaking back down into the gap, now below Friday's low of 5977 in the S&P, and below 6004 in the ES futures. That's it!!"
Now real quick...as we keep going higher and higher and higher, the market is certainly subject to a sharp liquidation break at any time so don't get complacent and stay sharp! I have no idea if this break will happen today or in the near future, but the odds are stacking up for just that kind of move! It's like landing on red 18 times in a row in Roulette. It is not a high probability event but these things do happen!!!!
Futures are higher again and we may have a true gap above Friday's high of 6040.50. We have gone all the way up to 6053 in the overnight session, however, price is fading back towards 6040.50, so whether or not it opens above or below will be a key data point to watch this morning. Any move back into the prior days range will look to target the levels I have for you in the sections below.
Any move below 6040.50 we could be targeting VAH (Value Area High) @ 6032.75, then overnight low @ 6029 then POC then 1/2 back. Just think about all these prices levels as bowling pins that need to be knocked down. Take them one at a time.
If price stays above 6040.50 then look for upper targets, and as you can see in the profile pic, the overnight high has already hit our target levels before the opening bell has even rung! Question now could be....."Will the regular trading session buyers keep up the momentum as the overnight players have already done?!?!" Futures are trading @ 6042.50 at the time of this writing.
VPOC Update: Yes you guessed it....another new VPOC was added yesterday @ 5995 so we now have 30 below current price! Another new record.
TARGETS AND KEY LEVELS TO WATCH:
/ES upside target is: 6045 - 6055
Key Levels: 6029 - 6025 1/2 Back & POC
downside target is: 5990 - 5980
/NQ upside target is: 21,345 - 21,365
Key Level: 21,265 Friday's high then 21,240
downside target is : 21,155 - 21,115
/RTY upside target is: 2430 - 2440
downside target is: 2395 - 2385
Economic Data: Nothing of importance today!
More Color....... By Analyst Rich Rickus
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/ES - Demand at $5950-45 with Supply above at $6040 HOD
Bearish
Buyers trapped below $5940 after a pullback below $5935 looking to play SHORT targeting $59010 then at $5890
Bullish
Sellers trapped above $5945 after a break and retest above $5945-50 playing LONG targeting $6000-05
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SPY - Demand at $597 with Supply at $599
Bullish
Sellers trapped above $597 after a break and retest above $598 looking to play LONG targeting new HOD
Bearish
Buyers trapped below $596 after a retest from $595 targeting $593 then $592
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/NQ - Key Demand at $21195 then $21248 with at Supply $21320
Bullish
Sellers trapped above $21248 looking to play long after a pullback holds above targeting $21300
Bearish
Buyers trapped below $21200 and holding looking to play short targeting $21155
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QQQ - Key Demand at $513-514 with Supply above at $515
Bullish
Sellers trapped above $513 looking to play long from a break and retest at $514 targeting $515 then $516
Bearish
Buyers trapped below $513 after a break and retest below $512 looking to play short targeting $510 then low $509
Have a great day!
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