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Good Wednesday morning,
Can bulls keep their edge? So far, the answer is yes!
In the profile pic and key levels below, you can see the 5-day balance area highlighted in the rectangle, capturing the value areas over the last 5 days. These are the important levels for the near term. The high is 6,335 to the low is 6,290. Any price action that stays within this range means the buyers are still in control. And remember the "value area" calculates where 70% of the trading day's volume occurs, and when we have this much overlap, it means the market is balancing up here as the current trend has taken a breather! There have been multiple liquidation breaks, however, the buyers have stepped in each time to take price higher, and this morning is no different!
Price is back inside the prior day's range and the first key level is 6,276.25. As long as price stays above that level, then the edge remains with the bulls. Also, over the lower end of the 5 day balance at 6,290 also confirms this point. Next target would be the POC at 6,310, then upper targets. If sellers take price back below 6,290, then look for 6,276.25, then the lower targets. Only price AND value building below 6,290 could signal true change in the current tape!
Futures are currently trading at 6,298 at the time of this writing.
VPOC Update: The VPOC at 6,323.50 was taken out on yesterday's pullback, so we now only have four below. 6,271 could be in play today.
VPOCs
6,271 / 6,146 / 6,091 / 6,050
TARGETS AND KEY LEVELS TO WATCH:
/ES upside target is: 6,325 - 6,335
Key Levels: 6,310 POC
downside target is: 6,270 - 6,260
/NQ upside target is: 23,175 - 23,200
Key Level: 23,121 1/2 Back
downside target is : 22,975 - 22,950
/RTY upside target is: 2,245 - 2,255
downside target is: 2,210 - 2,200
Economic Data : Red Star Events
PPI - Final Demand @ 8:30 AM ET
Industrial Production @ 9:15 AM ET
EIA Petroleum Status Report @ 10:30 AM ET
Treasury Buyback Announcement @ 11:00 AM ET
Beige Book @ 2:00 PM ET
Treasury Buyback Results @ 2:00 PM ET
John Williams Speaks @ 6:30 PM ET
More Color By : Rich Rickus
1. ES - Key Demand $6250-6240 then Supply above at $6335- 6340
Bullish : Sellers trapped above $6240 looking to play a break and retest above $6250 long targeting $6300 then $6325
Bearish Buyers trapped below $6240 looking to play short after a break and retest below $6235 targeting $6220 then a break down into $6175
2. SPY Key demand at $619-620 with Supply above at $624-625
Bullish Sellers trapped above $620 looking to play a break and retest from $621 long targeting $622 then a breakout into high $624’s
Bearish Buyers trapped below $619 after a break and retest below $618 targeting $616 then a breakdown into $614s
3. /NQ Key demand at $22800 with Supply above at $23112
Bullish Sellers trapped above $22800 looking to play a break and retest above $22850 long targeting $22900 then a breakout back into low $23100s
Bearish Buyers trapped below $22750 looking to play short from below $22740 targeting $22600 then $22550s
4. QQQ Key Demand at $550-549 with Supply at $556-557
Bullish Sellers trapped above $550 looking to play a break and retest from $551 targeting $553 then a breakout into high $555
Bearish Buyers trapped below $549 looking to play a break and retest below $548 targeting $546 then $545s
Have a great day!
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