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Good Wednesday morning,
That pullback yesterday did not last long—literally, only 30 minutes. But the fact that buyers took markets right back up, and with futures up again this morning, tells us buyers are still firmly in control. It is always prudent to be on the lookout for breaks lower, especially after such a large move higher since the April 7th lows, but we never said to panic and sell everything! We also said the poor high on Monday told us that the up move was not over yet—and here we are again, only a day later, testing that poor high at 6,374.
The other event that drove futures higher was the deal President Trump announced between the U.S. and Japan. The tariff rate is only 15% on Japanese imports, which is notably lower than the previously threatened 25% rate. Additionally, Japan will invest $550 billion into the U.S. economy!
📊 In the profile pic and key levels below, you can see we have a true gap higher, outside the prior day's range (over 6,354), and are testing the VPOC at 6,368.25. If price can stay in this area, then the next stop is the poor high at 6,374, followed by upper targets at 6,385–6,395.
If sellers take price below 6,354, then the VAH (Value Area High) and overnight low at 6,345 would be the next stop—then the POC at 6,335, and lower targets would follow. Any further liquidation would have us looking for 6,320–6,300.
Futures are currently trading at 6,369 at the time of this writing.
🧭 VPOC Update: Another new VPOC was added above yesterday at 6.368.25, and the new one below at 6,335 was taken on that liquidation break, so we now have one above and four below current price. With the gap higher this morning, 6368.25 is obviously in play!
Current VPOCs:
- 6,368.25
- 6,283.50
- 6,146.00
- 6,091.00
- 6,050.00
TARGETS AND KEY LEVELS TO WATCH:
/ES upside target is: 6,385 - 6,395
Key Levels: 6,354 Prior High then 6,335 POC
downside target is: 6,340 - 6,330 then 6,320 - 6,310
/NQ upside target is: 23,350 - 23,375
Key Level: 23,222 POC
downside target is : 23,150 - 23,100
/RTY upside target is: 2,290 - 2,295
downside target is: 2,265 - 2,260
Economic Data : Red Star Event
Existing Home Sales @ 10:00 AM ET
Crude Inventories @ 10:30 AM ET
More Color By : Rich Rickus
1. /ES - Key Demand $6240- 6225 Supply above at $6375
Bullish : Sellers trapped above $6240 looking to play a break and retest above $6250 long targeting $6305 then $6330
Bearish Buyers trapped below 6250 looking to play short after a break and retest below $6235 targeting $6200 then a break down into $6185
2. SPY Key demand at $626-625 with Supply above at $630
Bullish Sellers trapped above $626 looking to play a break and retest from $627 long targeting $629 then a breakout into high $630
Bearish Buyers trapped below $625 after a break and retest below $624 targeting $623 then a breakdown into $622
3. /NQ Key demand at $23100 with Supply above at $23150
Bullish Sellers trapped above $23225 looking to play a break and retest above $23250 long targeting $23400 then a breakout back into low $23500’s
Bearish Buyers trapped below $23100 looking to play short from below $23100 targeting $22800
4. QQQ Key Demand at $560 with Supply at $563 -564
Bullish Sellers trapped above $560 looking to play a break and retest from $561 targeting $563 then a breakout into high $564s
Bearish Buyers trapped below $559 looking to play a break and retest below targeting $557 then $556
Have a great day!
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