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Good morning and TGIF!
Well they did it again! Buyers came back in just like Tuesday and Wednesday and the gap was filled and upper targets hit! We are right back in fantasy land and Rainbows and Unicorns are everywhere!
Hopefully you used the levels and targets I gave you yesterday because the /ES absolutely nailed it almost to the tick and the /NQ's got very close. The pullback was short lived because as mentioned, the way they (buyers) closed the markets the last three days continues to confirm that they do not have a care in the world and keep buying the dips.
I'm gonna keep it short and sweet today because the profile pic below tells the story!!! There was another late afternoon rally and the emotional trade was to crush shorts once again and have people chasing prices higher. You can see this very clearly where I labeled the "Single Prints" on the pic below. You can't see this on a normal bar or candle chart but it is very evident using the market profile software! So game plan is as follows: 1.) As long as we stay above the single prints, bulls are in control. 2.) You can see where I labeled ON Low and VA High....this means Over Night Low and Value Area High. As long as price stays above those levels then that is even more bullish!
Bearish scenarios are now building because futures are now mixed to lower this morning as some economic data was just released and futures flushed lower! If this liquidation break holds and we stay below 5050-5045, then target single prints then POC...Point of Control then yesterday's low!!
As far as value and untested points of control, we took out another one above at 5041.50 and added yet another new one below at 4985, so we now sit with 17 untested points of control below. Again this is rare but the game is still higher for now and these are confirming data points. People continue and are willing to keep paying higher and higher prices!!! Let's see how they feel with this new data that just came out!!!
By the way, something very interesting someone sent me this morning!!
The top 1% now officially have more wealth than the entire middle class of America…
“There has been no greater engine of inequality than the Federal Reserve Bank of the United States.”
- Stanley Druckenmiller
TARGETS AND KEY LEVELS TO WATCH:
/ES upside target is: 5060 - 5070
downside target is: 5045 - 5035
/NQ upside target is: 18,025 - 18,050
downside target is : 17,960 - 17,940
/RTY upside target is: 2080 - 2084
downside target is: 2065 - 2060
Economic Data Today:
**Housing Starts and Building Permits @ 8:30 AM EST
**PPI - Final Demand @ 8:30 AM EST
Consumer Sentiment @ 10:00 AM EST
FED members Barr and Daly speak today.
More Color.......
/ES - Key Demand at $5010- 5020 with Supply at $5070- 5060
- Hold above $5040 with a break and retest targeting new HOD
- The only way I would want to play short is if price break below $5000
SPY - Consolidating inside Supply at $504-501 w/ Demand at $498 - 499
- I would like to see a sell off at the open with price holding above $497 to play
long targeting $499 first then $501
- A break and hold below $498 I would like to play short targeting $495
SPX - Demand at $5020-5030 with Supply at $5050-40
- Break and hold under $5010 I will look to play short
- Break and retest above $5010 and I will look to play long
/NQ - Key Demand at $17950 -65 with Supply above at $18050-18122
- I would only like to play short if price breaks and holds below $17940
QQQ - Key Demand at $432-433 then $435 with Supply above at $450-48
- Buyers trapped at the open with no new HOD after a pullback I will look short
- Sellers trapped at the open above $435 looking to play long
Also Watching …
AMD - Consolidating inside Supply at $180-178 with Demand below $174-172
- I would like to see sellers trapped at the open holding above $177 to play long
Have a great day and an amazing weekend! Remember Monday the markets are closed for the Presidents Day Holiday!! We'll see you again Tuesday the 20th!!
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