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Good Wednesday morning!!
New all time highs continue to ring out day after day and there seems to be no end in sight to this rally. Wait, didn't I just say that yesterday?!?! Well yes I did and I can parrot that statement again today as markets are gapping up to new all time highs again.
Salesforce.com (CRM) reported earnings last night after the close and the stock is hitting new all time highs this morning as we speak, bringing up many other stocks with it as the AI story continues to be strong! As we said yesterday....
"Traders and investors around the world continue to put capital to work, but as we all know, this cannot last forever. However, for now, you don't want to fight the trend."
For today, as you can see in the target levels and profile pic below, futures are gapping well outside of the 2 day "balance" and any price action above 6068 in the ES futures tells us that buyers are still firmly in control! For the S&P cash, any price above 6055 confirms trend is still very much intact. We did mention this yesterday and it bears repeating again today....."Please remember a liquidation break could happen any day at any time so stay frosty!"
Futures are higher this morning on a true gap (meaning outside of prior day's range) with overnight inventory that is 100% net long, so there is a decent probability of a fade lower. We are also hitting our upper target levels already, which is very bullish, so the $64,000 question is...will it continue or do traders sell this gap to cash in on profits?!?!
Watch for the "look above and fail" move at the overnight high, currently at 6084.25. If that level does not get taken out early out once the bell rings, then there could be a short below the first one minute low! Futures are trading @ 6082 at the time of this writing.
VPOC Update: No new VPOC's added yesterday so we still have 29 below current price. 6015 is the closest below.
TARGETS AND KEY LEVELS TO WATCH:
/ES upside target is: 6080 - 6090
Key Levels: 6068 - 2 Day balance high then POC then 6062
downside target is: 6050 - 6040
/NQ upside target is: 21,400 - 21,450
Key Level: 21,310 Prior High and Overnight low
downside target is : 21,190 - 21,150
/RTY upside target is: 2445 - 2455
downside target is: 2410 - 2410
Economic Data:
MBA Mortgage Applications @ 7:00 AM ET
ADP Employment Report @ 8:15 AM ET
Alberto Musalem Speaks @ 8:45 AM ET
PMI Composite Final @ 9:45 AM ET
Factory Orders @ 10:00 AM ET
ISM Services Index @ 10:00 AM ET
EIA Petroleum Status Report @ 10:30 AM ET
Treasury Buyback Announcement @ 11:00 AM ET
Treasury Buyback Announcement (Preliminary) @ 11:00 AM ET
4-Month Bill Auction @ 11:30 AM ET
Jerome Powell Speaks @ 1:45 PM ET
Beige Book @ 2:00 PM ET
Treasury Buyback Results @ 2:00 PM ET
More Color....... By Analyst Rich Rickus
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/ES - Demand at $6045-50 then below at $6030 with Supply at $6060-70 HOD
Bearish
Buyers trapped below $6045 after a pullback below $6040 looking to play SHORT targeting $6030 then $6015
Bullish
Sellers trapped above $6040 after a break and retest above $6045 playing LONG targeting $6065 - NEW HOD
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SPY - Demand at $601-602 previous Supply with NEW Supply above that at $603-604
Bullish
Sellers trapped above $601after a break and retest above $602 looking to play LONG targeting high $604 then low $605
Bearish
Buyers trapped below $601 after a retest from $600 targeting $598 then $597
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/NQ - Key Demand at $20940 then above that at $21100-21150 with Supply $21259 HOD
Bullish
Sellers trapped above $21100 looking to play long after a pullback holds above $21150 targeting $21280 than $21300
Bearish
Buyers trapped below $21100 and holding below looking to play short targeting $20865
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QQQ - Key Demand at $509 -510 that was previous Supply with a GAP then Supply above at $516 HOD
Bullish
Sellers trapped above $509 looking to play long from a break and retest at $510 targeting high $511 then $512
Bearish
Buyers trapped below $509 after a break and retest below $508 looking to play short targeting $506 then mid high $505
Also watching
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AMZN Key Supply flipped to Demand at $ 212-211 that was previous Supply
Bullish
Sellers trapped above $212 after a break and retest from $212.30-50 playing long targeting high $214 then $216
Bearish
Buyers trapped below $212 after a break and retest from $211 playing short targeting $209 then $208
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SHOP Key Demand at $110-111 with Supply above at $115-114
Bearish
Sellers trapped below $110 after a break and retest above $109 playing LONG targeting
$113 then breakout into $115
Bullish
Buyers trapped above $110 after a break and retest above $109 playing LONG targeting
$108 then breakdown into $107
Have a great day!
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