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Good Tuesday morning!
Now that was a wild ride! Yesterday, the bulls started out the day looking and feeling pretty good, however, the sellers stepped up their game very early on (@ 9:48 AM EST) and took price much lower during Monday's session. Watching the key levels and targets helped once again, and while they weren't perfect, they were instrumental in determining trade direction bias!
Case in point, even the small cap RUSSELL (/RTY) hit our upper target range between 1980 - 1990 (high was 1984) and then reversed course, almost hitting the downside target of 1940-1930. Monday's low was 1947 in the /RTY! The /ES and /NQ missed their upside targets, however, the NQ's hit them on the downside, and the /ES missed by only 7 points!
The key thing each day is watching the levels and targets that are posted and then using them to help guide your trades. Please remember that price is just an advertising mechanism, while time and volume validate and judge an auction! And that's all the market is ladies and gentlemen, one big auction! When price gets to expensive, people sell, and when they become cheap enough, they buy! That's it! Whether we are talking about exotic cars or fine art, it's all the same! I've said this MANY times before...trading is not easy but using key market generated levels and targets is of the utmost importance! We all trade different strategies, however, we all can use the key levels and targets to our advantage!
Another important level yesterday was 5490 in the S&P. As I said, price had to stay over 5490 to remain bullish. Well, intraday price went below 5490, down to 5468, but closed at 5528, so the edge still remains with the bulls. Also, as mentioned, the next upper targets in the S&P remain at 5571 and then 5645.
In the profile pic and key targets below, /ES futures were trading very close to the POC (Point of Control) at 5550, but just flushed down to the overnight low and 1/2 back at 5536, so this is the first key level for today. If price can stay above 5536, then look for a retest of the POC at 5550, then yesterday's high at 5578.75, and then upper targets. Now, if sellers push and keep price below 5536, then look for lower targets of 5510-5500, then possibly 5490-5480.
Futures are trading at 5533 at the time of this writing.
VPOC Update: No new VPOC's were added or taken out yesterday, and the closest one above is at 5690, and the closest one below is at 5315. Again, most likely neither are in play today. We have 7 above and 15 below.
TARGETS AND KEY LEVELS TO WATCH:
/ES upside target is: 5590 - 5600
Key Level: 5550 POC & 5536 Overnight low & 1/2 back
downside target is: 5510 - 5500
/NQ upside target is: 19,700 - 19,750
Key Level: 19,509
downside target is : 19,365 - 19,320
/RTY upside target is: 1985 - 1995
downside target is: 1950 - 1940
Economic Data:
4-Week Bill Settlement
8-Week Bill Settlement
4-Month Bill Settlement
International Trade in Goods (Advance) @ 8:30 AM ET
Retail Inventories (Advance) @ 8:30 AM ET
Wholesale Inventories (Advance) @ 8:30 AM ET
Case-Shiller Home Price Index @ 9:00 AM ET
FHFA House Price Index @ 9:00 AM ET
Consumer Confidence @ 10:00 AM ET
JOLTS @ 10:00 AM ET
4-Week Bill Announcement @ 11:00 AM ET
8-Week Bill Announcement @ 11:00 AM ET
4-Month Bill Announcement @ 11:00 AM ET
6-Week Bill Auction @ 11:30 AM ET
More Color....... By Analyst Rich Rickus
- /ES - Key Demand $5480-90 with Supply at $5580
Bullish : Sellers trapped above $5480looking to play a break and retest above $5590 long targeting $5575 then $5590
Bearish Buyers trapped below $5470 looking to play short after a break and retest below $5460 targeting $5440 then a break down into $5430
- SPY Key demand at then at $544-545 with Supply above at $553-554
Bullish Sellers trapped above $544 looking to play a break and retest from $545 long targeting $548 then a breakout mid high $550s
Bearish Buyers trapped below $543 after a break and retest below $542 targeting $540s then a breakdown into $539s
- /NQ Key demand at $19250 - 19200 with Supply above at $19600-19650
Bullish Sellers trapped above $19200 looking to play a break and retest above $19250 long targeting $19400s then a breakout back into low $19600’s
Bearish Buyers trapped below $19150 looking to play short from below $19100 then $18900
- QQQ Key Demand at $464-465 with Supply at $475
Bullish Sellers trapped above $464 looking to play a break and retest from $465 targeting $467 then a breakout into low mid $468s
Bearish Buyers trapped below $464 looking to play a break and retest short from $463 targeting $461 then $460s
Have a great day!!
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