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Good Tuesday morning!
The bears continue to stalk their prey!!!
And the things we were looking for in Monday's session (meaning price action that would continue to give the edge to the bears) played out yesterday and the scales continue to tip to the downside. As mentioned yesterday morning, a few excerpts....
"And I mean a new short term downtrend that may last a few days, and even a few weeks, BUT we need to see a few more things play out to validate this so be patient."
"In the profile pic and key target levels below, you can see the large drop Friday followed by the bounce we are seeing right now. As far as the VERY KEY levels today, it is going to be the 6075-6085 range!"
Well those things that played out were:
1.) Price could NOT get above 6075-6085. That was important.
2.) There was a break in value lower.
3.) The POC (Point of Control) moved down below Friday's POC.
4.) Price closed below prior day's range:
All bearish!
This morning we are seeing another bounce just like yesterday, and these bounces will most likely give us an opportunity to sell into this strength. The first short term target is the overnight high @ 6016 and then the secondary target of 6028-6030 would be the next key range to watch! If price even gets there then reverses, this is a great short opportunity. IF the tempo and momentum is strong then let that level of 6028-6030 get taken out and then look for upper targets @ 6040-6050.
Now if price cannot even get above the overnight high then look for a retracement to the POC (Point of Control) @ 6002.25. The new battle zone is between 6016 and 6002.25. If the POC gets broken to the downside then the next target would be yesterday's low @ 5994.50 then lower targets listed below and in the profile pic Futures are trading @ 6002 at the time of this writing.
VPOC Update: No new VPOC's were added or taken out yesterday so we have 3 above and still have 30 below for context.
TARGETS AND KEY LEVELS TO WATCH:
/ES upside target is: 6040- 6050
Key Levels: 6002.25 POC & 6016 Overnight High
downside target is: 5965 - 5955
/NQ upside target is: 21,625 - 21,650
Key Level: 21,408 Prior Low & 21,454 Overnight High
downside target is : 21,240 - 21,200
/RTY upside target is: 2220 - 2225
downside target is: 2160 - 2155
Economic Data: Busy Day
4-Week Bill Settlement
8-Week Bill Settlement
4-Month Bill Settlement
Lorie Logan Speaks @ 4:20 AM ET
Case-Shiller Home Price Index @ 9:00 AM ET
FHFA House Price Index @ 9:00 AM ET
Consumer Confidence @ 10:00 AM ET
Richmond Fed Manufacturing Index
More Color....... By Analyst Rich Rickus
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/ES - Key Demand at $6055-6050 with Supply above at $6110
Bullish : Sellers trapped above $6075 looking to play a break and retest from $6080 long targeting $6100 then new HOD
Bearish Buyers trapped below $6070 looking to play short from $6060 targeting $6040 then a break down into $6030s
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SPY - Key demand at $605 with Supply above at $608- 607
Bullish Sellers trapped above $605 looking to play a break and retest from $606 long targeting $608 then a breakout into $609
Bearish Buyers trapped below $605 after a break and retest from $604 targeting $602 then a breakdown into $601
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/NQ - Key demand at $21900 then below at $21750 with Supply above at $22055-65
Bullish Sellers trapped above $21900 looking to play a break and retest from $21950 long targeting $22100 then a breakout into $22200
Bearish Buyers trapped below $21900 looking to play short from $21875 targeting a breakdown into $21700 then $21600s
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QQQ Key Demand at $528-529 with Supply above at $534-533
Bullish Sellers trapped above $529 looking to play a break and retest from $530 targeting $531 then a breakout into $532
Bearish Buyers trapped below $528 looking to play a break and retest short from $527 targeting $525 then $524
Have a great day!
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