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Good Tuesday morning,
OK, so now what? The buyers returned to the fray yesterday after the huge liquidation break on Friday, and this is evidenced by value building higher and a new VPOC added below at 6,480! The question is: will the momentum continue back to new all time highs? So far this year, there have been 21 brand new all-time highs reached in the S&P, and as of now, with the 7 handle gap in the futures, we are about 30 points from another new all time high at 6,532.65. That level was hit on Friday morning just before the big rug pull. Let's prepare for today's trade.
📊 In the profile pic and key levels below, we have a critical level at 6,503, which is the POC (Point of Control), half-back, and the overnight low. As long as price remains above this key level, buyers remain in control. Any move above the prior day's high of 6,516.50 makes it even more bullish, and we would look for upper targets at 6,540–6,550. If sellers take over and break price below 6,503, then the momentum shifts, and the prior low at 6,490.25 down to 6,480 is where we would look for price to go. By the way, any price action that remains between 6,503 and 6,516 is considered balance.
N.B. Today, we have the PPI Final 8:30 a.m. and crude inventories at 10:30 a.m. this morning, and also, the BLS (Bureau of Labor Statistics) will release the preliminary benchmark revision to the employment data at some point today, so be prepared and stay frosty. Unfortunately, the time of this release is unknown so this could bring in a volatility spike at any time!
Futures are currently trading at 6,514 at the time of this writing.
🧭 VPOC Update: A new VPOC was added below at 6,480, so we now have none above and five VPOCs below the current price.
Current VPOCs:
- 6,480.00
- 6,450.00
- 6,264.50
- 6,146.00
- 6,091.00
- 6,050.00
TARGETS AND KEY LEVELS TO WATCH:
/ES upside target is: 6,540 - 6,550
Key Levels: 6,503 POC, ON Low and 1/2 back
downside target is: 6,.490- 6,480
/NQ upside target is: 23,975 - 23,995
Key Level: 23,824 1/2 back
downside target is : 23,725 - 23,700
/RTY upside target is: 2,415 - 2,425
downside target is: 2,385 - 2,375
Economic Data : Red Star Events
PPI Final @ 8:30 a.m. EST
Crude Inventories @ 10:30 a.m. EST
More Color By : Rich Rickus
Have a great day!
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