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Good Monday morning,
Taking a 10,000-foot view through a telescope, it seems as though all is calm and very beautiful—which it is. But looking at the markets under a microscope, things are quite a bit different! The liquidation break we saw Friday was massive, so could this finally be the start of a much-needed pullback? Or will the bulls fight back and retake control today?! Hate to say it, but it will be another coin toss once the opening bell rings. And I say that because if things were more bearish, futures should be in the lower half or third of Friday's range. However, price is above halfback, the POC, and the Value Area High, so this is showing buyers are right back at it! Who wins these key areas will be important to watch today, so let's get into it!
📊 In the profile pic and key levels below, as mentioned, futures are trading above the POC at 6,480 and also above VAH at 6,491.50. Also, price is above the bottom of the spike at 6,493 and Friday's halfback at 6,497. You can see the liquidation break formed a “b”-shaped pattern on Friday, and the huge set of single prints could offer little resistance on the way back up. As long as buyers keep price above this range, then the shorts will be the most at risk of losing their big win from Friday!!! Please remember when trading: always ask yourself who is winning, who is losing, and who is most at risk of losing their gains?! If price can stay above 6,497, then we will be looking for upper targets at 6,525–6,535. And if upper targets are taken out, use the pivot table below for extended upside targets.
Now, if sellers can push price back below 6,497 - 6,491, then the overnight low and the POC at 6,480 would be the next downside target. Further liquidation could see 6,475 - 6,465.
Futures are currently trading at 6,505 at the time of this writing.
🧭 VPOC Update: As mentioned Friday, yesterday, 6,470.50 could be in play, and was and got taken out on the drop Friday. Also, the VPOC at 6,517.25 as also taken out. We now have none above and five VPOCs below the current price.
Current VPOCs:
- 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: 6,525 - 6,535
Key Levels: 6,497 - 6,491 1/2 Back and VAH then POC 6,480
downside target is: 6,.475- 6,465
/NQ upside target is: 23,875 - 23,900
Key Level: 23,696 Bottom of Spike
downside target is : 23,650 - 23,625
/RTY upside target is: 2,415 - 2,420
downside target is: 2,385 - 2,380
Economic Data : Very Light Today
Consumer Credit @ 3:00 p.m. EST
More Color By : Rich Rickus
Have a great day!
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