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Good Thursday morning!
Well that selling didn't last long and that is exactly why I said yesterday "ONE DAY DOES NOT MAKE A TREND!" We are right back to blast off!!!
As bearish as it felt on Tuesday, the price action yesterday was far from confirming how traders and investors around the world were feeling as they were right back into their buying operations. The tech heavy NASDAQ was a bit softer however the DOW, RUSSELL and the S&P held up very well and stocks like Royal Caribbean and MCD were hitting all time highs. It's not only about the FANGMAN stocks! With this big gap higher this morning, the market is going to open up very close to new all time highs once again and the shorts are getting squeezed.
The key levels and profile pic are listed below and with overnight action so bullish, we are opening up right around target levels. When this happens, we need to see if the gap holds or does it fade back lower? Overnight inventory is actually mixed even though we are at new highs in the overnight session. This means that the odds of a move back down decrease. It doesn't mean that they won't go lower but the gap will cause people to chase and shorts to get hurt! With a gap this large, sometimes its better to trade a bit later rather than sooner to see how things shake out.
VPOC Update: No new VPOC's were added yesterday and we did NOT add a new VPOC above yesterday as price was taken higher and went all the way to 5892.75 so 5884.75 got taken out! All VPOC's currently reside lower!
TARGETS AND KEY LEVELS TO WATCH:
/ES upside target is: 5910 - 5920 then 5940-5945
Key Levels: 5894 Value Area High and Bottom of spike
downside target is: 5865 - 5855
/NQ upside target is: 20,480 - 20,520
Key Level: 20,449 Bottom of spike from 10/15
downside target is : 20,260 - 20,230
/RTY upside target is: 2325 - 2335
downside target is: 2290 - 2280
Economic Data: VERY BUSY TODAY!
Jobless Claims. 8:30 AM ET
Retail Sales 8:30 AM ET
Philadelphia Fed Manufacturing Index 8:30 AM ET
Industrial Production 9:15 AM ET
Business Inventories 10:00 AM ET
Housing Market Index 10:00 AM ET
EIA Natural Gas Report 10:30 AM ET
EIA Petroleum Status Report. 11:00 AM ET
Austan Goolsbee Speaks 11:00 AM ET
3-Month Bill Announcement. 11:00 AM ET
6-Month Bill Announcement. 11:00 AM ET
5-Yr TIPS Announcement 11:00 AM ET
20-Yr Bond Announcement. 11:00 AM ET
4-Week Bill Auction. 11:30 AM ET
8-Week Bill Auction 11:30 AM ET
Treasury International Capital. 4:00 PM ET
Fed Balance Sheet 4:30 PM ET
More Color....... By Analyst Rich Rickus
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/ES - Demand $5840- 50 then at $5865-70 with Supply above at $5919
Bearish
Buyers trapped below $5839 after a pullback below $5830-35 looking to play SHORT targeting $5820 then $5802
Bullish
Sellers trapped above $5850 after a break and retest above $5855-60 playing LONG targeting $5885 then $5900
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SPY - Demand at $580-581 with Supply above at $585 HOD
Bullish
Sellers trapped above $581 after a break and retest above $582 looking to play LONG targeting $583 then $584
Bearish
Buyers trapped below $580 after a retest from $579 where Demand would flip back to Supply targeting $578 then $577
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/NQ - Key Demand at $20190-2023 with Demand flipped to Supply $20400
Bullish
Sellers trapped above $20400 looking to play long after a pullback holds above targeting $20485 the $20500
Bearish
Buyers trapped below $20190 and holding looking to play short targeting $20100 then $20015
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QQQ - Key Demand at $486 with Supply above at $492
Bullish
Sellers trapped above $486 looking to play long from a break and retest at $487 targeting $489 then $492
Bearish
Buyers trapped below $486 after a break and retest below $485 looking to play short targeting $483
Also watching …
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NVDA Key Demand $129-127 with Supply above at $135 -134
Bearish
Sellers trapped below $134 after a break and retest from $133 looking to play short targeting $132 then $130
Bullish
Buyers trapped above $135 after a break and retest from $136 looking to play long targeting $138 then $139
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AMD - Previous Demand at $152-153 Demand that was previously Supply at $162 -163
Bullish
Sellers trapped above $162 after a break and retest from $163 targeting $165 then $167
Bearish
Buyers trappers below $161 after a break and retest from $160 targeting $158 then $157
Have a great day!
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