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Good Wednesday morning!
Do we have some possible storm clouds brewing?!?! Well Jeff Bezos sold another $2 Billion worth of stock, over $8 Billion recently, so if we take anything from that, we might be seeing a top forming! AMAZON is being added to the DOW JONES INDUSTRIAL AVERAGE and will be replacing Walgreens (WBA). The stock got a bit of a pop on the news because funds who invest in the DOW now have to buy that stock, but the weakness in some of the large cap tech cannot go unnoticed!
I am NOT saying the market follows just AMZN of course, but NVDA lost 60 points in the last two days ahead of the company reporting earnings tonight after the close, and also, SMCI lost almost $400 points in the last few days! That is huge so it seems like there is more selling behind the scenes to me!
Anyway, we had a gap lower yesterday and the markets actually held that gap. We also took out two VPOC's below and added one above....certainly some bearish signs so clouds rolling in and maybe even further downside??!!
As mentioned in yesterdays MC, if we stayed below prior day low then look for downside....and our downside targets were hit....so I am hoping they helped in your trading operations!
The profile pic once again lays out the important levels....anything between 4998 - 4968 is a hold, and any buying above the single prints probably brings in some short covering and then you would target gap and gap fill....5009-5013.
If sellers press further below 4970-4968 then I think we could resolve lower to the 4935-4930 area. I didn't think we would hit those lower targets so quickly yesterday but 4971.75 was hit and the low of the day was 4968.25. I am not ruling anything out anymore in this market environment!!!!
As far as value and untested points of control, we took out 2 VPOC's below and added one above at 5020. We now have 1 above and 15 untested points of control below.
TARGETS AND KEY LEVELS TO WATCH:
/ES upside target is: 4995 - 5015
downside target is: 4965 - 4975
/NQ upside target is: 17,725 - 17,750
downside target is : 17,475 - 17,450
/RTY upside target is: 2027 - 2030
downside target is: 2010 - 2006
Economic Data Today: *Red Star Event
*FOMC Minutes @ 2:00 PM EST
(These are the minutes from the last FED meeting)
More Color.......
/ES - Demand flipped to Supply at $5020-5010 with Demand below at $4965-4980
- I would only look to play long after a pullback and hold above $4970 or if there is a rally and Bulls can defend above $4995 on a break and retest targeting $5020
SPY - Demand flipped to Supply at $500-498 with Demand below at $494-496
- Sellers trapped at the open after a sell off and hold above $493 to play long after a break and retest test from $496 targeting $495 .20 first then $496
- Buyers at the open failure to break above $498 after a pull back and hold at $497 looking to scalp short targeting $495
- Demand below $494 isn’t until $490 LOD -491 where I would like to buy dips long
SPX - Key Demand at $4950 -4960 then Supply at $4992-4980
- As long as price holds above $4950 I would like to play long
- Below $4948 leaves room to the downside where Demand is at $4930-20 LOD
/NQ - Consolidating below Demand looking to flip Supply if it can hold below $17540
- Demand below that at $17490-17450 with yesterday LOD
QQQ - Balanced range with Demand at $423-424 with Demand flipped to Supply from Yesterday at $430-428 with resistance below that at $427
- A break out above $428 I would like to see it break and retest holding above to play long. Failure to break above $428 i will look to play short from $ 427
Also watching…
AMD - Key Demand at $160-162 with Supply at $166-168
- I would like to see sellers trapped to play long later in the day if key demand can hold with a break and retest above $ 162 targeting $163.50 then $165
PYPL - Key Demand at $57-58 with a Gap Down overnight
- Watching this to see if sellers become trapped at $57 to play long off a break and retest from $ 58 targeting $60
- Buyers at the open trapped below $59 after pullback and hold I’ll look to play short targeting $57 first then new LOD
Have a great day and see you tomorrow!
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