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Good Wednesday morning,
FED Day!
Futures are down across the board after some strong selling yesterday afternoon! Today will all be about two things...the ISM manufacturing data @ 10:00 AM EST and more importantly the FED decision on interest rates which gets released @ 2:00 PM EST, followed by FED Chair Powell's press conference @ 2:30 PM EST. The market already knows with about 99% certainty the FED will NOT make any changes to current interest rate policy, however, what the Chairman says will be the key drivers moving forward!
As the sign above says, there will be some wicked volatility today so trade cautiously. You could get whipsawed out of your trades so you must be quick and agile or sit on your hands!
As was noted yesterday......
"The Employment Cost Index came in hotter than expected and sellers pushed the button! Today will be challenging as the bulls, who were still in control, will now be tested and if there is any follow through and hold lower after this data, we could be in for more downside action."
For today, even if we did not have the ISM and FED data to worry about, I have laid out the key levels and potential areas for balance. The profile speaks loud and clear!!!!
VPOC Update: A new VPOC was added above yesterday @ 5145.75. We have 3 above and 17 below and 5038 has already been tested in the overnight session.
TARGETS AND KEY LEVELS TO WATCH:
/ES upside target is: 5095 - 5105
Key Level: 5067 Overnight high & POC
downside target is: 5045 - 5035
/NQ upside target is: 17,715 - 17,750
Key Level: 17,660 Value area low and top of spike
downside target is : 17,475 - 17,445
/RTY upside target is: 1995- 2005
downside target is: 1965 - 1955
Economic Data:
Treasury Refunding @ 8:30 AM EST
PMI Manufacturing @ 9:45 AM EST
ISM Manufacturing @ 10:00 AM EST
Construction Spending @ 10:00 AM EST
JOLTS @ 10:00 AM EST
Crude Inventories @ 10:30 AM EST
FOMC Announcement @ 2:00 PM EST
FED Chair Press Conference @ 2:30 PM EST
More Color.......
/ES - Key demand at $5038-5005.50 with Supply adobe at $5155-5141
SPY - Key Demand at $495-496 with Supply at $506-508 then previous
$510-511
1. Buyers trapped below $506 looking to play short targeting $504 then $503
2. Sellers trapped after a sell off above $496 playing a break and retest long
targeting $5498
SPX - Key Demand at $4970- 4980 with Supply above at $5110-5080
1. I would only want to play long if price can break and hold above 5100 or if there is an early sell off at the open and bounces from $4950 holding
$4970
/NQ Key Demand at $17300-17285 with Supply above at $17752
1. Buyers trapped below Supply off a break and retest with no follow through above $17700 I would like to play short targeting $17650 then $17625
QQQ Key Demand at $418-420 with Supply above at $426-428
1. Buyers fail to break out above $427 I would like to play short targeting
$425
2. Sellers trapped above $417 after a early morning sell off looking to play
long below that leaves room towards $414 Demand
TSLA - Sellers trapped above $182 after sell off looking to play long target $188
AMD - Consolidating inside Key Demand at $144-146 with Supply above at $160-162
1. Break and retest above $146 looking to play long targeting $150 then 154
As ALWAYS, have your stops in place!!!
Have a great day!
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