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Good Tuesday morning!
We hope you enjoyed the long weekend and now back to business. All top line figures are near, or at, all time highs with exception of the Russell. The DOW and S&P are a chip shot away while the NASDAQ 100 (NDX) hit new all time highs Friday. The bulls are still living in paradise without a care in the world! Or so it seems anyway.
This morning, futures are up across the board and more new records will be set. As you can see in the profile pic below, price is currently above the Monday Holiday session, which I have highlighted for you with a box in the profile pic below. Even though the markets were closed Monday, futures still traded just in case something happened around the world! It is a shortened session which closed at 1:00 PM EST but I wanted to at least show you the range.
When the bell rings this morning, the buyers are still firmly in control and any price action that stays above the quadruple top @ 6147, which I have circled in the profile pic below, then keep bias long. Now that being said, overnight inventory is 100% net long so there is a decent chance that the markets correct this long overnight inventory with a liquidation break! So please stay alert.
The way you play that is if the overnight high gets taken out, which currently sits @ 6157.75, then drops back below, then that is a short. OR, if the overnight high does NOT get taken out, then the short is below the first 1 minute low with a stop over the 1 minute high, then of course trail the stop down immediately if price drops as anticipated.
If sellers do step up and a liquidation break occurs below 6147, then 1/2 back and POC @ 6135 would be the next downside target. If tempo and momentum continue to accelerate to the downside, then look for lower targets! Futures are trading @ 6156 at the time of this writing.
VPOC Update: Another new VPOC was added below @ 6099 on Friday. We still have 6148.50 and 6171 above however with this gap today, we are now above above 6148.50. We now have 30 below.
TARGETS AND KEY LEVELS TO WATCH:
/ES upside target is: 6155- 6165
Key Levels: 6147 Quadruple top then 6135 POC
downside target is: 6105 - 6095
/NQ upside target is: 22,325 - 22,365
Key Level: 22,225 Friday High
downside target is : 22,125 - 22,100
/RTY upside target is: 2300 - 2315
downside target is: 2275 - 2265
Economic Data: Light Day
Empire State Manufacturing Index @ 8:30 AM ET
Housing Market Index @ 10:00 AM ET
Mary Daly Speaks @ 10:20 AM ET
4-Week Bill Announcement @ 11:00 AM ET
8-Week Bill Announcement @ 11:00 AM ET
4-Month Bill Announcement @ 11:00 AM ET
3-Month Bill Auction @ 11:30 AM ET
6-Month Bill Auction @ 11:30 AM ET
Michael Barr Speaks @ 1:00 PM ET
6-Week Bill Auction @ 1:00 PM ET
52-Week Bill Auction @ 1:00 PM ET
Treasury International Capital @ 4:00 PM ET
More Color....... By Analyst Rich Rickus
Away this week , back Monday
Have a great day!
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