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Good Friday morning!
Well there it was again! A strong liquidation break yesterday early in the trading session, however, it was "Groundhog Day" all over again for the poor bears! Bulls stepped back in and took the markets right back up, gravely disappointing short sellers. Now don't get me wrong, all top line figures closed in the red however the day could have ended up much worse.
As mentioned yesterday....
"The intraday volatility continues to be epic but that of course not only brings danger, but also opportunity. I have said time and time again don't fall in love with your trades too soon, especially on the intraday time frame! We continue to see massive short squeezes and liquidation breaks throughout the day so trade carefully and be able to switch sides in an instant."
That turned out to be prescient.
In the profile pic and key targets levels below, the past four trading days are laid out for you, and because of the recent price action, today is once again a jump ball. The Friday - Tuesday balance was taken out on Wednesday to the upside (and failed) and new all time highs were reached. The very next day on Thursday, price fell off a cliff early on in trading (and failed) and a strong liquidation break had people scrambling to get out of their longs and get short. That however did not last long. The low of the day was put in @ 10:00 AM EST and although price did test those lows a few more times in the trading session, the bounce really kicked in @ 1:30 PM EST and markets kept marching higher resulting in a lot less damage on the board.
As you can see in the profile pic, we are right back in that 2 day balance so the thing to watch for today is who wins the battle? Will the bulls keep it above the POC @ 6137 and take it back over 6141 heading towards upper targets, or do the bears press again and take it below 6126 where we would then look for lower targets. Ladies and gentlemen, that's it! That's what we all need to watch out for today. And one last thing. Today is the monthly Options Expiration so there will be increased volatility as traders position themselves for options that need to be closed, exercised or rolled to next week or next month so stay frosty. Futures are trading @ 6140 at the time of this writing.
VPOC Update: A new VPOC was added above yesterday @ 6163. We now have 6163 and 6171 above and 30 below with 6099 being the closest.
TARGETS AND KEY LEVELS TO WATCH:
/ES upside target is: 6155- 6165
Key Levels: 6137 POC
downside target is: 6115 - 6105
/NQ upside target is: 22,225 - 22,250
Key Level: 22,151 Bottom of Spike
downside target is : 22,025 - 22,000
/RTY upside target is: 2280 - 2290
downside target is: 2250 - 2240
Economic Data:
PMI Composite @ 9:45 AM EST
Existing Home Sales @ 10:00 AM EST
Consumer Sentiment @ 10:00 AM EST
More Color....... By Analyst Rich Rickus
Away this week , back Monday
Have a great day and an even better weekend!
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