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Good Wednesday morning!
Buyers were right back at it yesterday and I was right about the short term selling......it was done in only a matter of hours!
Even some big names like AMZN, META and NVDA, which lost 10% in a day and a half, went right back up! Not to all time highs mind you, but once again the selling in the markets, or any stock for that matter, is very short lived. This tells us that traders and investors continue to put money to work so be prepared and trade accordingly! There is still very little fear in the markets at this time and money still flows freely into anything that moves.
As testament to that, remember yesterday morning when I gave you the range to watch and then the targets that would likely follow........
"For today's game plan, a very key level to watch is between 5210 and 5192....this is the battle ground for now. Depending on who wins this territory, you can see upper and lower targets in the pic below!!!"
And well the upper targets of 5230-5235 were nailed after 5210 was taken out and even surpassing those levels to hit 5246.75!!! Now please remember, I do not have a crystal ball nor do I know with 100% certainty where the markets will go, but I do know that if certain levels are defended (meaning buyers or sellers take price above or below key levels) then I want to go with that move and try to get on the correct side of the trade!!!
Sellers tried early in the session and took it below 5192, however buyers came back in and took price back above that level, so that should have been a key signal to be careful being short!! And when they took over 5210, that was another strong signal to be on the long/buy side!!
Futures are mixed this morning and so is overnight inventory so today could be a bit tricky to determine where price might go. You can see in the profile pic below that if price stays below the double top (yesterday's high and overnight high) and above overnight low, then it is likely a balance day and best to sit on hands. If price moves above the double top then buyers are resuming their operations and the upper targets are listed for you. If we take out the overnight low, then 5222.50 (pivot) would be the first downside target, then 1/2 back from yesterday and VAL...Value Area Low would be next! Markets continue to be stretched so we are always on the lookout for a sharp liquidation break!
Not much on the economic data front today as we only have crude inventories but tomorrow will be busier with PPI, retail sales and jobless claims.
VPOC update: There are now 20 untested points of control below current price and 5178 is our latest newcomer to the list. It is really quite incredible but hey that's the game that is being played right now.....AI, Bitcoin and crypto are being bought up like there is no tomorrow. Once again another new record and something I have never seen before!
TARGETS AND KEY LEVELS TO WATCH:
/ES upside target is: 5255 - 5265
Key Level: 5213.50 Value Area Low and 1/2 Back
downside target is: 5200 - 5210
/NQ upside target is: 18,560 - 18,590
Key Level: 18,330-18,340 Value Area Low and 1/2 Back
downside target is : 18,375 - 18,350
/RTY upside target is: 2100 - 2105
downside target is: 2070 - 2065
Economic Data: Light today!
Crude Inventories @ 10:30 AM EST
More Color.......
NVDA - Short is done for now!
META - Decent liquidation break but buyers came back in...short over for now.
AAPL- Still Bearish! Still in the "mercy bounce" stage. Anything back above $174.50 and the short is over for the time being.
/ES - Key Demand at $5200-5210 with Supply above at $5250-5235
- Previous Supply has been flipping to Demand, I would only like to play short if price can break below and hold $5220 as resistance. Ideally I want to see sellers at the open trapped above $5230 in order for me to play long targeting new HOD
SPY - Gap inside Key Supply at $518-516 with it consolidating overnight. Demand below that is at $513-514 then at $508-510. Ideally I want to play a break and retest from premarket lows at $516 looking to play long targeting $518 then new HOD
- Sellers at the open moving price $515.50 as resistance I will look to play short
- Buyers at the open I will wait for a pullback to hold $517 in order to play long
SPX - Key Demand zones at $5135-5145 then Supply flipped to Demand at 5160-65
- HOD Supply at $5180-90 waiting to see how the price reacts. If there is a
breakout above $5170 I would like to play a break and retest from $5175 long
- Sellers at the open getting trapped inside Demand above $5160 I will look to play long. A Breakdown below and I will wait for Demand to flip back into Supply.
/NQ - Key Demand at $18435-50 with Supply above at $18515-18500
- I would only look to play short if price can break and hold below $18420 targeting $18400. Below that not much Demand until $18380 then at $18340
- Sellers at the open trapped above $18460 I will look to play long target $18475
QQQ - Key Demand zone at $441-442 with Supply above at $444 - 445
- Buyers trapped at the open failing to make new HOD with selloff below $443 I will look to play short if price can pullback and hold below targeting $442 then $441
- Sellers at the open trapped inside $441 - 442 with a bounce looking to play long off a break and retest targeting $443.55 first then $445.
- Price below $441 i will look short off a pullback where Demand flips to Supply
Also Watching …
AMD - Key Demand at $194-196 then at $202-204 with Supply at $208-210
- As long as price can hold above $202 I will look to play long after a pullback
TSLA - Consolidating inside Key Demand at $172- 174. Supply above at $181-183
- Below $172 and I will look to play short targeting $170 first then $168
BA - After bad news and lawsuits I am only watching how the price reacts at $184-185
Supply. If price can hold below I will look to play short targeting $183 first then $181
As ALWAYS, have your stops in place!!!
Have a great day and Happy Birthday Mom...wish you were still here!
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