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Good Thursday morning!
As markets hit new all time high's again yesterday, I thought it would be appropriate to show the picture the Economist magazine put out a few weeks back....How High Can The Markets Go?!?! Well it seems there is absolutely no end in sight!
After digesting PPI and CPI numbers this week, traders and investors around the world seem to have no problem putting more and more capital to work. While you should never fight a trend, this will not last forever. Basic market dynamics seem to have gotten very skewed and out of whack but I understand why as the economy remains strong and the consumer is still spending like drunken sailors! Don't believe me?!! Just look at the chart of COST and WMT which just reported earnings this morning. The stock is breaking to new all time highs as we speak!
Overnight inventory is net long and we have been above and below prior days high so we are not sure if there will be a true gap or not at the open. Today might be a balance day as markets digest the record breaking achievements of yesterday. If price remains above the overnight low and settlement then bulls remain firmly in control and any price action above 5337.25 and overnight high @ 5343.25, then we should look for upper targets! If sellers finally come in and take out the overnight lows, then look for a move to the POC then lower targets as listed in the profile pic below
SBUX: No change....still!. We bought some AMD @ $158.25 yesterday and will buy more over $162.
VPOC Update: But of course. Another new VPOC yesterday was added below @ 5268.75 and 5297.75 was taken out above! We now have 21 VPOC's below current price levels indicating a very strong trend remains intact.
TARGETS AND KEY LEVELS TO WATCH:
/ES upside target is: 5345 - 5355
Key Levels: 5328 Overnight low & Settlement
downside target is: 5310 - 5300
/NQ upside target is: 18.790 - 18,810
Key Level: 18,691 Overnight low and POC
downside target is : 18,630 - 18,610
/RTY upside target is: 2140- 2145
downside target is: 2105 - 2100
Economic Data: RED STAR EVENTS TODAY!
Housing Starts and Building Permits @ 8:30 AM EST
Jobless Claims @ 8:30 AM EST
Import Export Prices @ 8:30 AM EST
Industrial Production @ 9:15 AM EST
Natural Gas Inventories @ 10:30 AM EST
More Color.......
/ES - Key demand at $5257-5265 then below at $5240
1. Sellers trapped at the open looking to play a break and retest from $5260
targeting $5280 then $5300
2. A strong sell off below $5250 and failure to reclaim back above $5257 I will look to play short targeting $5240 then $5220
SPY - Key Demand $523- 524 with Supply at $530
1. If price can hold above $523 after pre market sell off I will look to play long targeting $525 then $527
2. Breakdowns below $523 with a break and retest below holding as
resistance I will look to play short targeting $520
SPX Key Demand at $5250 - 62 the below that at $5210 - 5220
1. Sellers trapped above $5250 looking to play long targeting $5272
2. A break and retest below $5150 I will look to play short targeting $5235
/NQ Key Demand at $18545-18575 with Supply above at $18715
1. A breakdown below $18545 after a retest I will look to play short targeting
$18475. If buyers defend $18550 would like to play long targeting $18575
QQQ Key demand at $445.55- 446.50 with Supply above at $
1. Sellers trapped above $444 after early sell off looking to play long targeting $446 then 448
2. A breakdown below $445 and retest holding below I will look to play short targeting $443 then $441
TSLA Key Demand at $167-169 with Supply at $182.47 - 181.83 and at $176
1. Sell off at the open where sellers are trapped above $169 looking to play
long targeting $172 then $174
2. Failed rally below $176 I will look to play short targeting $171
As ALWAYS, have your stops in place!!!
Have a great trading day!
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