|
Good Wednesday morning!
BEARS ATTACK!!!!
As we mentioned Monday morning, the volatility was going to pick up this week and here we go!! THE CPI FLUSH!!!
Futures just had a HUGE gap down after the inflation numbers were released and now futures are shedding almost 400 points on the DOW and down almost 60 in the S&P!! NASDAQ futures are down around 225 points! We are also now well below the recent two day low so a lot of people above are trapped long!
Quick recap first.... The gap down yesterday proved to be short lived as buyers stepped in pretty much right from the opening bell and a bullish bounce ensued! The key levels we talked about were valuable once again as Friday's low @ 6075.75 was a great tell as to who was going to win the day. However, you see no matter how you feel about the markets, or where you "think they should go", you NEVER know and must have a neutral approach meaning you don't mind if the markets go up OR down!
Well now this morning, you can see how quickly things can turn and computers and algo's can flush or rip higher futures in milliseconds!!! Humans just can't trade that fast!! For today, this move was so HUGE and so fast that unless price can get back above 6049 then the tide may have turned in favor of the bears for near term!!! Not a guarantee but we will see how today closes.
As you can see in the profile pic below, highlighted by the rectangle on the chart, the move was so fast that there were no trades in the ES between 6075 to 6063!!! How does this happen? Because traders and market makers pull their bids and there was no one to buy until 6062.75....and then price went even lower! Traders who got long yesterday or in the overnight just got smashed and we are also now well below prior days low of 6064.
If buyers step back up and take the price back above the VPOC @ 6049, then there could be a short squeeze back up to prior days low @ 6064. If sellers stay in control and keep price below 6049, then look for 6000 as the next possible downside level. We are already at my anticipated levels @ 6028 so this could also be an important line in the sand at the opening bell! Futures are trading @ 6032 at the time of this writing.
VPOC Update: No new VPOC's yesterday however because of this huge move lower, we are now below the newly added VPOC @ 6049 which is a key level for today! We still have 6148.50 and 6171 above and 30 below with the new VPOC @ 6049 being the closest to current price and certainly in play today. Next lowest is 5950!
TARGETS AND KEY LEVELS TO WATCH:
/ES upside target is: 6100 - 6110
Key Levels: 6049.00 VPOC
downside target is: 6050 - 6040 then 6028 then 6000
/NQ upside target is: 21,950 - 21,980
Key Level: 21,701 Yesterday's low
downside target is : 21,680 - 21,650
/RTY upside target is: 2300 - 2310
downside target is: 2255 - 2245
Economic Data: Busy Day
MBA Mortgage Applications @ 7:00 AM ET
CPI @ 8:30 AM ET
Jerome Powell Speaks @ 10:00 AM ET
EIA Petroleum Status Report @ 10:30 AM ET
4-Month Bill Auction @ 11:30 AM ET
Raphael Bostic Speaks @ 12:00 PM ET
10-Yr Note Auction @ 1:00 PM ET
Treasury Statement @ 2:00 PM ET
Christopher Waller Speaks @ 5:05 PM ET
More Color....... By Analyst Rich Rickus
-
ES Demand at $6060-6070 with Supply above at $6110
Bearish
Buyers trapped below $6060 after a pullback below $6050 looking to play SHORT targeting $6040 then $6025
Bullish
Sellers trapped above $6110 after a break and retest above $6115 playing LONG targeting $6140 then $6155
-
SPY - Demand at $603-604 with Supply above at $610-609
Bullish
Sellers trapped above $ 603 after a break and retest above $604 targeting $605 then $606
Bearish
Buyers trapped below $602 after a retest from $601 targeting $599 then breakdown into $598
-
/NQ - Key Demand at $21700 with Supply above at $21960
Bullish
Sellers trapped above $21700 looking to play long after a pullback holds above $21720 targeting $21800 then a breakout into $21900 target last Friday HOD
Bearish
Buyers trapped below $21650 looking to play SHORT after a pullback holds below $21600 looking to play short targeting $21450 then a breakdown into $21300
-
QQQ - Supply flipped to Demand at $523-524 with new Supply above at $532
Bullish
Sellers trapped above $523 looking to play long from a break and retest at $524 targeting high $526 then a breakout into $527
Bearish
Buyers trapped below $522 after a break and retest below $521 looking to play short targeting $519 then mid high $518
Have a great day!
| 
