|
Good Tuesday morning,
Time to protect gains!
After a fade lower from a gap to new all-time highs, followed by several hours of balance, buyers stepped in at 2:45 PM EST and took markets to new all-time highs, again! There was an almost perfect bounce off of the POC at 6224.75, as yesterday's low was 6224.25! That is a very bullish sign, and was one of our key levels to watch. We call that "runners tagging up"!
This morning, however, we are seeing some signs of liquidation—**meaning traders and investors appear to be taking some chips off the table—** so we must be careful today. I am not saying this is definitely the top and we are going lower, but we have been going straight up for over a week, so the market is looking toppy up here.
In the profile pic and key levels below, price has dropped sharply off the overnight highs, and yesterday you can see an excess high (or spike) that happened at the end of the day. We call that "getting long on the pile." Price moved too far away from value at the end of the day, and that generally doesn't end well for those who chased late in the session.
If price can stay inside yesterday's range, then that is a good sign for the buyers. If price can actually get back over the POC and half back at 6239.75, then 6245, we could see a move higher to our upper targets. Any price that stays below the POC, followed by a loss of VAL and the overnight low at 6230.25 and 6227.50, points to lower targets—6225-6215, then possibly 6205–6195.
Futures are currently trading at 6232 at the time of this writing.
VPOC Update: No new VPOC's were added on Monday. We still have three below: 6146, 6019 and 6050.
TARGETS AND KEY LEVELS TO WATCH:
/ES upside target is: 6270 - 6280
Key Levels: 6239.75 POC then 6245 1/2 back
downside target is: 6225 - 6215
/NQ upside target is: 22,900 - 22,925
Key Level: 22,808.50 VAL then 22,835 POC
downside target is : 22,700 - 22,675
/RTY upside target is: 2200 - 2210
downside target is: 2165 - 2160
Economic Data :
Jerome Powell Speaks @ 9:30 AM ET
PMI Manufacturing Final @ 9:45 AM ET
ISM Manufacturing Index @ 10:00 AM
Construction Spending @ 10:00 AM ET
JOLTS @ 10:00 AM ET
Treasury Buyback Announcement (Preliminary)
More Color By : Rich Rickus
- ES - Key Demand $6140 -6150 then below at $5960 with Supply
above at $6170-80
Bullish : Sellers trapped above $6140 looking to play a break and retest above $6150 long targeting $6172 then $6180
Bearish Buyers trapped below $6100 looking to play short after a break and retest below $5995 targeting $5958 then a break down into $5920’s
- SPY Key demand at $606 then at $603-604 with Supply above at
$610-612
Bullish Sellers trapped above $606 looking to play a break and retest from $607 long targeting $609 then a breakout into high $611 new HOD
Bearish Buyers trapped below $605 after a break and retest below $604
targeting $603 then a breakdown into $601
- /NQ Key demand at $22200 then at $21500 with Supply above at
$22380-22400
Bullish Sellers trapped above $22200 looking to play a break and retest above $22010w long targeting $22300 then a breakout back into low $22400
Bearish Buyers trapped below $21550 looking to play short from below $21500 targeting $21400 then $21200s
- QQQ Key Demand at $540 then $535-536 with Supply at $544
Bullish Sellers trapped above $539 looking to play a break and retest from $540 targeting $542 then a breakout into high $543
Bearish Buyers trapped below $539 looking to play a break and retest below $538 targeting $535 then $533
Have a great day!
| 
