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Good morning!
Markets were completely in "balance" mode yesterday and you can see in the profile pic below that the highs and lows of the entire two days are almost identical! Very rarely does happen but that is not the most important or earth shattering thing here. The key point to take away is that when the market balances like this, once it picks a direction, either up or down from here, then that is a big tell and you want to go with that direction! Longer term trend it still up so let's see if buyers are still committed!
Overnight inventory is balanced and we are inside of yesterday's range. This makes it a coin toss at the open however we just had PPI come out @ 8:30 AM EST and futures just flushed sharply lower! When the markets make a move like this, the important thing to watch is whether or not the market takes that initial move back....meaning since it was lower, will the buyers come back in and support the markets again?!?! And oh yes, we also have FED Chair Jerome Powell Speaking at 10:00 AM EST this morning so there could be even more fireworks today!
One last thing I will leave you with is that Friday and Monday had back to back Points of Control @ 5245.50. This is important because that is where the most amount of volume occurred at that specific price! Meaning a lot of business was conducted there by market participants so that is very key! And by the way if you are ever unsure of certain terms that I mention here in Morning Color, like POC or VWAP or something else, please check out the "Glossary Tab" as this will help you with these concepts and also the importance of these concepts!
SBUX: No change....price target to add over $77 not hit yet. And MEME stocks are back in play...GME, AMC, BB and KOSS.
VPOC Update: No new VPOC's yesterday. We now have 1 above @ 5297.75 and 20 below with 5230 in play today as it was yesterday.
TARGETS AND KEY LEVELS TO WATCH:
/ES upside target is: 5265 - 5270
Key Levels: 5245.50 BACK to BACK POC's
downside target is: 5230 - 5225
/NQ upside target is: 18.350 - 18,370
Key Level: 18,270 - 18,265 1/2 Back and Value Area High
downside target is : 18,240 - 18,220
/RTY upside target is: 2085- 2090
downside target is: 2055 - 2050
Economic Data: RED STAR EVENTS TODAY!
PPI @ 8:30 AM EST
FOMC Chair Jerome Powell Speaks @ 10:00 AM EST
More Color.......
/ES - Key demand at $5230-32 and $5188-5200 with Supply above at
$5260-72
1. A breakdown below $5230 after a break and retest I would like to play
short targeting $5210
2. Sellers trapped above $5188 I would like to play long targeting $5220
SPY - Key Demand $515-516 with Supply at $521 -522
1. If sellers become trapped above $515 after a sell off I will look to plat long targeting $518 then $519
2. I will only look to play short if buyers fail to reclaim above $515 after a
break and hold under $514 strong sell off targeting $512 then $510
SPX Key Demand at $ 5200 -5210 with Supply above $5254-5240
1. A sell off below $5200 a failure to reclaim back above I will look short
targeting $5180 then $5166
2. Sellers trapped above $5200 looking to play long after a break and retest
above $5210 targeting $5260
/NQ Key Demand at $18072-18107 with Supply above at $18350-08
1. If sellers become trapped after a sell off doesn’t break and hold below
$18070 I will look to play long targeting $18205
2. A breakdown below $ 18069 I will look to play short targeting $17970
QQQ Key demand at $437 -438 with Supply above at $444-443
1. As long as the price remains above $437 I will look to play long. A
breakdown below $437 I will look to short targeting $435.50
2. Buyers trapped under $40 after a break and retest I will
AMD Key Demand at $147-146 with Supply formed at $152 -153
1. Buyers trapped below $152 after a break and retest looking to play short
targeting $149
AMZN Key Demand at $$184-186 with Supply above at $190-191
1. If sellers become trapped above $185 after a sell off I will look to play long targeting $188 then $189
2. I would only like to play short if price holds below $184 targeting $182.55
As ALWAYS, have your stops in place!!!
Have a great trading day and week ahead!
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